Many people tend to be in the deepest financial crisis in the winter months. This may be due to a few different factors and can be different for each family. Here are some common causes of a winter financial crisis as well as some smart savings solutions that you can get started on right now to prepare for winter and protect yourself.
Causes of a winter financial crisis
Illness
With flu and cold season approaching, an illness could cause a financial crisis in more ways than one. Doctor visits, prescriptions and even hospitalization can take a toll on your finances. Loss of income due to time away from work when you or a loved one is ill can also be a factor.
Prepare for this possible outcome by getting well visits and flu shots in before winter, reviewing your insurance plan, printing out a list of $4 prescriptions and stocking your home with basic cold and flu care supplies. If you can, put a plan in place for alternate child care.
Loss of income
If your income is seasonal, then you can probably expect a loss in the winter. Common careers, such as construction, landscaping, carpentry and tourism are subject to seasonal income.
Prepare by creating a separate bank account that will be able to play your bills during lean months. Automatically transfer a portion of your paycheck into this account to cover the amount you will need.
Winter expenses
In the winter, there is usually heating costs to consider, as possibly other expenses, such as winter clothing.
To combat heating costs, lock in a low rate with your oil or gas company in the summer. Get on a budget plan, and you will spend significantly less for your oil or gas than you will in winter. Prepare by shopping ahead at bargain stores, end of season clearance, yard sales and thrift stores for winter supplies.
Click here for more articles by Mary Ann Romans.
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