Lifestyle. Career. Finance

4 Steps To Prepare For Unexpected Expenses

Monday, February 12, 2018
A woman’s hand with a ring and a polished nail holding an iphone towards a laptop on a desk with a distant flash drive.

Let's be honest with ourselves. The unexpected happens and as always, it can happen at the worst time.Your car breaks down. A pipe bursts under your kitchen sink. The refrigerator stops working. A government shutdown is issued.

Or, you have those yearly expenses that seem to creep up on you every year. Christmas, taxes, and birthdays. It feels like it's out of your control and is the pure definition of unexpected. So what do you do?

Well, you prepare for the unexpected.

It's kind of challenging to prepare for unexpected expenses when you don't know what those expenses may include. But doing the following beforehand will surely give you a leg up for when it happens.

Identify Those Unexpected Expenses
As I mentioned above, sometimes those yearly expenses creeps up on you. Before you know it, it's time to buy Christmas presents again. Do yourself a favor and stash a little aside each month for it. That way, when that time comes around again you aren't struggling to maneuver this expense around your regular bills.

Emergency Fund
Have an emergency fund handy. You never know when your tire may blowout on you and you need to buy a new tire. Or, when you'll need to hire a plumber. Having a separate stash already saved for those specific emergencies will alleviate the stress of trying to take care of it all at the last minute.

Move Funds Around
So maybe you planned to spend the money you had on a new pair of shoes. Well, for an unexpected expense you may have to give that up. Move some of your funds around to accommodate this need. It may not be fun to do, but at least you have the money available and on hand.

Credit Cards
I'm not pretty big on piling up credit to cards, but if an expenses hits you and there's no way of paying for it, use your credit card. It is smart to have in "in case of emergency" credit card that you use rarely. Just remember to pay that balance back.


12 comments on "4 Steps To Prepare For Unexpected Expenses"
  1. This is a great post! It is so, so important to always try to prepare for those unexpected expenses.

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    1. It really is. I rather have it and don't need it, then need it and not have it.

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  2. That emergency credit card is a wonderful thing to have. Now that my oldest is at an age where she's working and starting to establish her own credit, I've explained to her that she should always pay off her card so she has it in case something really urgent comes up.

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    1. Absolutely! As long as she understands paying it off she's well prepared.

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  3. Having an emergency fund is so important. It's been our goal to have one year's cost of living in savings and investments, which helps me feel so much better!

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    1. Me to! I've explained this to my husband as well. So much ease knowing you have it if you need it.

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  4. I hate doing it, but I know the feeling of giving up my new pair of shoes for an unexpected bill! =( Great post, thank you!

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    1. I know the feeling. It sucks, but at least you had it to take care of that unexpected bill.

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  5. I had to learn the hard way with those "unexepected expenses" but I know this year will be different. I waited till the last minute with that x-mas shopping. thanks for this reminder. good article.

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    1. Thank you! Now that I have a son we've begun preparing well in advance for the holidays.

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  6. This is a great post and totally on my goals for this year!!

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