4 Unexpected Expenses To Expect
Fiscal Fizzle- a recently discovered gem of the personal finance blogosphere. This article is inspired by my favourite post of his lately- about the ‘unexpected’ emergencies we can not only prepare for but anticipate.
Budget Blowout
How often we peg our financial issues- not keeping to a budget, not saving enough money, not paying down our debt- to the unexpected. Often our money is on such a fine line that any unanticipated event can blow the whole shebang out of the water. Hence, the world of emergency funds, designed to soften the blow when it, inevitably, falls. But some expenses can be expected, even if you’re not always sure when it will happen. Here are four categories to start saving money for- drawn from the Fiscal Fizzle.
Auto Repairs
Cars will break your heart. It is a truth universally acknowledged. They also will always, without fail, cost you money. There is no such thing as a car that runs smoothly without any need for maintenance. Fiscal Fizzle suggests you can even predict an approximate cost for expenditure, depending on the age of the vehicle, warranty, expected time you’re going to keep it and how often you are driving it. He budgets $1500- 2000 dollars for an 8 year old car, and less for his wife’s new car. Needing new tires can quickly eat up that amount, however, so think about budgeting a little bit extra on top.
Gifts
They are always what bring me undone. I’ll be on track for a budget, have paid off a bit of debt, or am saving up for a new household good, when the whole thing comes unstuck because I’ve entered birthday season. March, in particular, is brutal. But it shouldn’t be that hard to prepare for. Save up your Christmas gift budget and buy throughout the year when things are cheaper. Then work out which birthdays you would like to buy gifts for, and budget for that expenditure to. Make sure you include those upcoming dates in your budget. It helps to set aside a little extra for birthday celebrations as well.
Everything Is Broken
Appliances often depart this mortal vale in droves. Just as soon as the microwave goes, the fridge keels over in sympathy and the oven bows out of the game out of sheer loneliness. Appliances always break. I’m not sure it’s possible to cover the replacement cost of everything you own, but do an audit to see what is likely to require replacing in the next year and then budget for it. If it seems like too huge an amount, budget for the replacement cost of the absolute necessities and take immaculate care of everything else.
Healthcare
Healthcare can be an immense unexpected cost. The cost of treatment or medications, even for slight problems, can be a huge dent into your savings. Simple procedures, like getting your wisdom teeth out, can completely derail your finances. You can’t prepare for what might happen but having some money set aside for specifically healthcare will help you sleep at night. It might be a nuisance now, but when the time comes when you need it, you’ll thank your stars you did save it.
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