5 Ways To Budget For Unexpected Legal Fees

The Marble Team

5 Ways To Budget For Unexpected Legal Fees

| 5 min
5 minutes

Rich or poor; young or old; single or married, corner store or a multinational corporation - every person and every business needs to take care of their finances. Without a sound budget in place, even a small unexpected expense can throw your finances out of whack.

In every budget, there should be space to set a little aside for a rainy-day fund. There’s great comfort and security to be had from knowing that you’re covered in the event of an emergency or unexpected legal fees.

But if you’re not used to saving and budgeting, what’s the best way to start? This practical and handy guide will show you how. We’ll cover the reasons why you should do it, together with five handy and practical ways you can start to put money aside, just in case. The journey begins here!

Why You Should Prepare A Rainy-Day Fund For Litigation 

If you think you’re likely to face litigation or require legal counsel in the future, it’s well worth starting to save right now. For example, perhaps your visa is coming to an end, and you’d like to engage an immigration lawyer to help you with your application for a Green Card. Maybe you fear that your marriage is on the rocks and would like a divorce lawyer to advise you on issues like alimony, child custody, and visitation rights.

Whatever your situation, starting a rainy-day fund for any potential litigation is a sensible precaution. Legal representation is like any other professional service - you get what you pay for. By budgeting now, you can make sure you get the very best legal counsel in the future, should you ever need it. 

Businesses Or Individuals: Should Everyone Be Budgeting?

Isn’t it funny how people who seem to have less apparently have more money? Think of your grandparents. They probably earned far less than you do now, but they always seemed to be more financially comfortable when they were your age. Just how did they do it?

The answer’s straightforward. They had a budget, and they stuck to it. They’ll tell you that they weren’t tempted to purchase things on credit or to overstretch themselves by buying luxuries they couldn’t afford or didn’t even need. Instead, if they wanted something, they saved up until they had enough money to buy it. This generation could learn a lot from parents and grandparents, most especially when it comes to finances!

Those sound, grandparent budgeting rules apply equally to businesses. But, unfortunately, the world is filled with great companies and wonderful products that go bust simply because they failed to budget properly.

5 Tips To Budget For Litigation

For anyone who thinks they might be facing litigation costs in the future, here are five common-sense tips to help with budgeting for expenditure. Of course, we’ve mentioned litigation, but all of this advice applies to saving in general: it’s a great habit to embrace!

Start Saving Right Away & Get An Idea Of Costs

Once you put your mind to it and commit to saving some money, it usually becomes very clear where you can cut costs. Sometimes, that means cutting back on something you love doing or having to choose between two luxuries. But the earlier you start, the quicker your savings start to grow!

Track Spending & Cut Costs

If you don’t know where your money’s going, you haven’t got a chance of saving anything! So, it’s vital to keep a detailed record of your expenditures. When you can, pay for everything by card: that makes it far easier to track what you’ve spent and identify areas where you can cut costs.

Set A Saving Plan and Stick To It

Set yourself a realistic and achievable savings plan, and stick to it - at all costs! This course of action can be tough if you’re not used to it or when you’re tempted by some treat you enjoy. But see it through, and you’ll experience a new, double-edged pleasure: the satisfaction of knowing you did it and the comfort of having something in reserve.

Consider Changing Your Habits 

You’ll be amazed by how even a small change in your habits can make a big difference. Small savings soon add up. For example, determine how much you could save by starting the day with a coffee at work rather than a pricier version at the shop. Or start cooking more and eating out less. Sometimes we spend money as a habit instead of a necessity, and if you’re able to break the chain, you can end up saving a lot!

Try The 50/30/20 Rule

The 50/30/20 Rule is a great way to start when you’re budgeting for the first time. The rule says you should spend 50% of your disposable income on what you need (like food, accommodation, and transport), 30% on what you want (like eating out, game tickets, and trips), along with 20% on savings and repaying your debts. 

It can come as a bit of a shock to see where your money’s going and how much certain items cost. But don’t be too hard on yourself, especially at the beginning. Instead, allow yourself a little flexibility (that tennis club membership keeps you fit and healthy, so it’s a need, not a want!). Soon enough, you’ll realize just how useful the 50/30/20 Rule is.

Why You Should Consider Legal Representation In Your Budget Plans

What if you suddenly find yourself facing a negligence charge where you could lose your business and go to jail or be forced to pay compensation to the victim if you’re found liable? In that scenario, you’d want to employ the very best criminal defense lawyer without worrying about the cost.

Moreover, if you foresee any chance of litigation in the future, you should factor that into your budget plans. What price can you put on your future security and peace of mind? And if you do need advice on any legal matter, the experienced team at Marble is ready to help with a free initial case assessment.

Bottom Line

The best thing about saving for a rainy day is the knowledge that you’ll be okay if the worst unfolds or if you need legal support. But a close second is that if you don’t need to access your savings, you have a nice little nest egg to support you should problems arise. So start saving and budgeting today!

5 minutes
Dec 30, 2020
The Marble Team