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Listed below are a number of unexpected expenses that could take a large chunk out of your savings if you don’t have a plan.            

Replacing your car

While you may budget for petrol and servicing, what happens if your car breaks down and you need to replace it or if there is a major repair?

In order to avoid being stranded without a car or having to take out a car loan, start setting a small amount aside every month so that when or if it happens you will have the savings put aside to pay for it in cash.


Although holidays are not necessarily an essential, it is still something that will give you great memories and some well-earned time away. If you don’t plan and save for a holiday, you may be tempted to rely on a credit cards or personal loan to fund the trip. The downside is that once the holiday is over, you will be left with debt that you could be paying off for years with high interest.

Even if you are not planning to take a holiday for a while, make plans now for a future holiday and start saving a little each month so that by the time you are ready to travel, you will have money saved to enable you to enjoy your time off.

Replacing major appliances

Appliances always seem to break down at the worst possible time. We often take appliances such as the washing machine, fridge and dishwasher for granted and don’t realise how important they are until they’re gone. So how long could you last without one of them?

A high quality large appliance could cost a couple thousand dollars, which can leave a large dent in your finances if you need to replace an appliance quickly. When your washing machine or fridge stops working unexpectedly, you’ll be glad you included it in your budget.

Vet expenses

When budgeting for medical expenses, you may forget to include your furry friend, who can often be the most expensive when it comes to medical bills.

Depending on what type of pet you have, there will be more than just the annual check-up to budget for. Some pets will require vaccinations, worming and dental care, not to mention emergency care if they are in an accident or fall sick and that doesn’t come cheap.

Pet insurance is a great way to help manage vet expenses. Setting aside a bit each month can give you a buffer if you don’t have insurance or in case the insurance does not cover the whole expense.

Each month when you put money aside for expenses like these, you may automatically put it in a savings account. You could make it work harder for you by using this money to save on your home loan. With interest rates at a record low, those with a high interest savings account may not see as big of a return on their savings account.

If you put your savings into a 100% offset account linked to your home loan, instead of earning interest at deposit account rates, you will be saving interest on your home loan at the current home loan interest rate. Then, if you need to access the money, the money is still readily available.

State Custodians has a full range of home loans with 100% offset accounts. If you would like to find out more about how a home loan offset account can help you save more, give our expert Lending Specialist team a call on 13 72 62 or leave your details here and they will get in contact with you.