Jijenge’s Guide to Managing Unexpected Expenses

Founder, managing director and Chief Executive Officer of Kenya’s leading credit only microfinance Jijenge Credit Limited Mr Peter Macharia Kamau has taken a moment to share with us golden tips on how to manage unexpected expenses

No matter how well you plan your finances, life has a way of throwing curveballs in the form of unexpected expenses. Whether it’s a medical emergency, car repairs, or unforeseen personal costs, such situations can leave you financially strained if you’re not prepared. Having a strategy for managing these unanticipated costs is essential to maintaining financial stability.

An emergency fund can serve as your secret weapon in tackling sudden expenses. This dedicated account, reserved exclusively for emergencies, ensures you have readily available funds when the unexpected happens. Building and maintaining such a fund requires discipline and a clear plan to avoid financial jeopardy.

Start by creating a budget that accounts for your income, essential expenses, and potential emergencies. Setting aside even a small amount each month can create a cushion for unforeseen costs like medical bills or home repairs. Additionally, keeping track of your spending habits allows you to identify areas where you can cut back, freeing up funds for emergencies.

Preparedness also means having adequate insurance coverage. Whether it’s health insurance to mitigate medical bills or car insurance for unexpected repairs, these safety nets can prevent financial hardship. Furthermore, staying mindful of your expenses and saving for larger purchases helps avoid unnecessary debt.

In moments of financial strain, remaining calm is crucial. Panicking can cloud your judgment and make it harder to find effective solutions. Assess the expense, determine its urgency, and explore ways to cover the cost. If you don’t have cash on hand, consider reducing discretionary spending, selling unused assets, or using a credit card with favorable terms. Just be cautious to avoid accumulating debt that could harm your credit score.

Another option is to take a proactive approach by strategizing for debt payments and evaluating the value of expenses before making purchases. By doing so, you ensure that your spending aligns with your financial goals. In dire situations, loans from reliable lenders like LendingPlate can provide short-term relief, provided you qualify and borrow responsibly.

The key to managing unexpected expenses lies in planning ahead. While you cannot predict every financial emergency, preparing for the unexpected can reduce stress and help you navigate challenges without derailing your financial health. With a well-thought-out approach, you can weather any storm and emerge stronger.