Run The Money
Follow Run The Money

4 Tips That Will Help You Avoid Losing Money

  • December 14, 2017

If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.

This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. Got it?

bank account drains

You need to make sure that you avoid issues in life that can drain your finances. This could be anything from an individual who is looking to get money from you, to a company, to a mistake that you have made that leaves you with very little money left in your account. Thankfully, there are ways to avoid financial issues that will hurt your bank account.

But you have to be aware of the problems you could face. There are quite a few to contend with. Let’s start by thinking about energy bills.

Bringing The Heat

Wait, energy bills can seriously negatively impact your finances? Actually yes and to think about this issue we need to consider winter. You see, through winter your bills are always going to rise because the temperature outside drops and that means you need to compensate by putting the heating on more often or turning up the thermostat. Both will drive up those energy bills and leave you in a position where the costs become more expensive than you hoped.

Now, you might say surely, it’s only going to be a few more bucks than you’re used to. But it could be a lot more than particularly if you have a problem with your heating system. A broken or damaged heating system in need of a service can either cause you to struggle to heat your home, or it will heat your home, but it will also require more power to do it. So, it will cost a lot more money, and you could find that your energy bill is a few hundred more than you expected at the end of the winter season.

Often, energy companies try and help you out by overcharging you through the rest of the year, so you build up money in credit. But you may have to change the settings on your account to ensure that the money stays in your energy account rather than going back to you.

Accidents At Home

There are a few ways that accidents can cost you money and the first issue that we need to explore is premises liability. What is premises liability? If you own property, you are taking on a legal responsibility for it. If anyone is injured on the property, than you can be held liable. A common miss assumption is that this is only relevant to business owners. It’s understandable why people think this because business owners have employees and various other people on their property. But actually, private homeowners can also be impacted by this.

Let’s say that someone is delivering a package to your door. In this example, you have an unstable stepping stone that causes them to trip over and hurt their back on your property. If they can prove this took place due to a witness, they can sue you for damages due to a personal injury. That’s is why you do need to be careful, particularly in winter when your driveway might be slippery.

The costs for this type of lawsuit won’t be small either and will probably be at least a few thousand, but will typically depend on the injury that has occurred. It’s advisable in a situation like this that you do get yourself a lawyer.

Issues On The Road

What about problems that will cost you a fortune on the road? Well, there’s the problem of an accident. Let’s say that you are involved in an accident on the road. There are a few things that can go wrong here. First, the car could get damaged which will lead to either a repair or a replacement. Either is going to be an expense but hopefully, your insurance provider will cover some or all of this cost. That’s why you should always be aware the type of insurance coverage that your company does offer. How much will you need to pay for the repair of your car in an accident? You might find that your insurance company doesn’t cover as much of the cost as you hoped for.

The other problem is that you or your family members might have been injured in the crash. If that’s the case, then you’re also going to need to pay for medical expenses and these can be costly. Again, your insurance might not cover it particularly if the injuries were severe. Dangerous truck accidents can lead to catastrophic injuries and expensive medical bills. In this situation, it is advisable that you do hire a lawyer and seek damages. That way you can get the money you need and ensure that the costs after an accident don’t cripple you financially.

Of course, the opposite can be true. Someone might try and claim that you caused an accident and if that’s the case, then you should also hire a lawyer. Often there are cases, where someone is accused who played no part in causing the accident and in cases like this, a lawyer is always going to be an essential hire. You need to make sure that there is someone to defend your case and make sure that you aren’t pushed to pay for something that wasn’t your fault. It’s not just drivers that try and pass the blame. Insurance companies are also often eager to shift the responsibility.

Trouble With Taxation

Finally, you do need to be wary of issues with taxation. It’s crucial that you make sure that you are paying the right amount in taxes and that’s particularly important for small run businesses. Paying the wrong amount in tax will result in issues with the government claiming that you owe them money. So, if you are running a small business even if it’s just a home run blog, do make sure that you are using a trusted accounting service to handle tax. It will help you avoid major penalties and costs further down the road.

Take this advice, and you should be able to avoid or at least deal with some of the issues in life that do tend to drain our bank balances.

4 Tips That Will Help You Avoid Losing Money