Such as the need for a new radiator in your vehicle or the costly replacement of a roof leak.
Additionally, you won’t want that to deplete the emergency fund you have set aside for unforeseen events.
It really depends on you and your situation how much extra you should have saved up for big, essential expenses.
Given the things you own and their overall condition, you should ask yourself what kind of emergencies you could reasonably anticipate.
For instance, if you don’t own a car or house, you might not need as much money saved as someone who does.
There are different inquiries to pose to yourself too: Do you have insurance that will cover damage from a fire or appliances that break?
Is your vehicle still covered by a warranty for repairs? Have you purchased these things new, or would they say they are more seasoned and bound to require fixing soon?
Do you have pet insurance to cover their medical expenses, if you have one?
Additionally, you should include costs for car maintenance and repairs in your budget if you intend to make a significant purchase in the near future, such as a car.
For instance, you should save anywhere from one percent to four percent of the value of your home for upkeep, and depending on how frequently you drive, car repairs could cost you more than $1,900 per year.
