Once a person creates a budget, far too often they give up on once they are faced with an emergency. Don't be that person! If you are faced with an emergency and don't have enough savings to cover it, try to cut some expense from your budget until things stabilize. If you run into problem with your car, here are some ways you can overcome the pain and stick to your budget.

What If My Car Breaks Down?

For some people, the thought of their car breaking down is their biggest fear, especially if they are on a tight budget. Repairs can be costly and can set your budget back significantly if you are not prepared to deal with the expense.

For starters, if your car does break down, immediately find an alternative way to get to work. Catch a ride, use the bus system, borrow a scooter or ride a bike. No matter what, do not put your job in jeopardy because you can’t find a way to get there. There is always a way. Too many jobs have been lost because an employee failed to be on time to work three or four days in a row and failed to explain the situation to their supervisor. If your car breaks down, call your supervisor and explain the situation right away. Maybe they can even help you find you a ride to work.

After you find an alternate way to work and have talked with your supervisor, it is time to take care of fixing your car. First, figure out if you have a repair warranty or if your insurance will cover the damage. If it is a new car, chances are you have an active warranty, which will cover any non-accident related damages. If the car is used, there may be a short-term warranty remaining on the car that you may not know about. Talk to the person or company you bought the car from to find out. If the damages are due to an accident, call your insurance company right away.

What If I’m in a Car Accident?

If you have been in an accident, after you have called the insurance company, get your car to a repair shop that will provide you with a free estimate. Make sure they will provide the estimate without requiring you to fix your car there, in case your insurance company will cover the damages or you can find a shop that will fix it for less. It is very important to get a printed copy of the estimate because your insurance company may try to inflate the cost to repair your car, in order total it out (not repair the car, and just write you a check!). If you have a printed estimate though, you can prove to your insurance company that you can get the car fixed for less than they thought.

If you weren't in an accident, still try to get your car to a shop that will give you a free estimate. Some shops will charge a fee to provide you with an estimate or will charge you a small fee if you then take your car to another shop. That is ok though because if you can find another shop to fix it for less (including the fee and towing), then you will actually have saved some money.

Call several garages in your area and explain what work needs to be done based on the estimate the shop provided you with. Explain that you are on a tight budget and ask what they can do for you. Also ask if they have payment plans that you can utilize to pay the costs over a period of time. Once you find out how much it is going to cost and what your payment schedule will be, adjust your budget to include that expense until it is payed off.

These situations are always tough, so do your best to stick to your budget and you will come out ahead at the end.

Keep Budgeting!

Chris

BuildMyBudget.com