Dealing With Unexpected Expenses

It seems that every month an unexpected expense arises that was never in your budget. Sometimes it’s the car needing repairs, one the kids needs braces or your hours were cut at work. It’s always something, isn’t it? So how do you deal with these unexpected expenses?

The first thing to realize about unexpected expenses is that if they happen every month, they are not unexpected. Sure, it’s something different every month, but it’s always something. You have to factor in “unexpected expense” into your budget.

If the month passes and nothing comes up, don’t spend that money. Odds are that the next month something twice as big is going to pop up. It just always seems to happen that way.

Do not think that nobody else gets these “surprise” expenses all the time. We all get them. Don’t get mad at these expenses. Your bills are not the problem, your spending is the problem.

One good way of dealing with unexpected expenses is by having separate accounts for separate needs. Whenever one of these surprise expenses arises you shouldn’t need to dig into your emergency savings account. Separate your money into different accounts. One account should be your emergency account and another should be a miscellaneous expenses account. Think of that account as your pre-emergency account.

Fund each of these accounts adequately and make sure to never touch the emergency account unless it really is an emergency (job loss, pay a kidnapping ransom, world war three). The pre-emergency account will act as a buffer between your unexpected expenses and your emergency bank account.