Truth be told, most of us just aren’t ready for a costly emergency without incurring some level of debt. However, saving a little money now can prevent bigger financial problems later. At Bank OZK, we recommend that you put aside $1,000 for unexpected expenses. Saving money for a rainy day is easier when you know which storm clouds to look for. Here are ten reasons why you need to save $1,000 right now.
1. The Cold Truth
According to BobVila.com, your refrigerator has a lifespan of about 10-15 years and is the most likely appliance in your home to breakdown. The average cost to repair a refrigerator is around $200. Replacing a busted fridge can cost you anywhere from $700 to $2,000 dollars.
2. Healthy Savings
No matter how well you eat or how hard you work out, everybody gets sick or injured. Many of us don’t have the health insurance to cover all costs of medical care. Keep in mind that the average annual deductible for single, individual coverage is $4,364.
3. Shift to Save
According to a study from the AAA, the average auto repair bill comes to between $500 and $600. More alarmingly, 1 in 3 motorists can’t pay it with cash on hand. Don’t let car trouble put you in debt. Like a spare tire, have your $1,000 rainy day fund ready.
4. Stay in Hot Water
Nobody likes taking a cold shower. But if you must suddenly replace a failed water heater, it’s either the cold shower or take a bath on costs. A new water heater will set you back about $750 to $1,400.
5. Tax Hike
Costs are rising in places you may not even be aware. For example, the average property tax nationwide for a single-family home in 2020 is up 4.4% from the previous year. Don’t be unprepared for that unwelcome expense.
6. Keep Your Cool
The average cost of a new central air unit? It’ll cost you! On average, you’ll pay more than $5,600. If you’re lucky, you may just need a fix. According to HomeAdvisor, the average cost to repair an AC unit is $336, with the high end cost at $1,100. Should your AC go out, you’ll want to have the funds for a quick remedy.
7. Pets Are Pricey
We love our pets. But caring for a pet can be expensive — especially if they get hurt or sick. Annual veterinarian care can cost up to $400 annually, but emergency treatment can easily cost north of $1,000. You thought the food and toys were costly!
8. Wheely Expensive
Are you hitting 60,000 or more miles on your car tires? Your wallet may be thinner than the tread on your tires, but you need to replace those radials for the safety of you and others. Once you purchase the tires and account for installation, you’re easily looking at a $1,000 invoice.
9. We’re Not Kidding
If you’re a parent, you know that children are a jackpot of unexpected costs. Athletic fees, schoolbooks, student trips, doctor visits — it adds up, and it adds up fast.
10. Happy Holiday$
Putting your Holiday shopping on credit is a winter tradition like fruit cake — and it’s just as appetizing. An average family drops about $1,500 during the Holidays. Smart Santas save for the spending season.
Need More Incentive?
With an OZK Savings account, you have the chance to win money simply by saving. The more you save, the more chances you earn to win $1,000.* Click here to learn more.
The $1,000 Prize Linked Savings promotion is not available to residents of Florida.
*Eligibility for this Prize Linked Savings Promotion requires an OZK Savings Account. Open to legal United States (U.S.) residents, residing in the states of Arkansas (AR), Georgia (GA), Texas (TX) and North Carolina (NC) who are 18 years of age or older. Void outside AR, GA, TX, NC and where prohibited. Eligibility requires an OZK Savings Account in Arkansas (AR), Georgia (GA), Texas (TX) or North Carolina (NC). Starts 12:00 a.m. Eastern Time (“ET”) on 01/01/23 and ends 11:59 p.m. ET on 06/30/23. For complete rules, visit winatozk.com. Sponsored by Bank OZK, 18000 Cantrell Road, Little Rock, AR 72223. Each $25 eligible deposit made to an OZK Savings Account is equivalent to one entry. The number of entries is limited to 10 per customer per Monthly Prize Period, from all qualifying accounts held by the Account Holder. Prize awarded as a direct deposit to the winners OZK Savings account. Go to winatozk.com.