Planning for Unexpected Expenses

Everyone is busy. We have jobs, families, responsibilities and we plan ahead as much as possible. In this scenario, we also have regular monthly bills, groceries, and other known expenses. These can include gas for your car, haircut, and back-to-school shopping. While this seems like a lot, there are always unexpected monthly expenses looming around the corner.


Unexpected expenses appear at the least convenient time, almost every time. Car repairs, traffic tickets, appliance repair, pest control, dental work, or emergency pet care falls into the “unknown” or “unexpected” category. And the worst part is that unexpected expenses are a part of life. Even though it’s hard to know what will happen when we still have to do our best to plan ahead.


Here are some tips for properly managing your funds when disaster strikes!


Start an emergency fund. As simple as it sounds, keeping a stash of funds separate from your regular saving’s account can really be a lifesaver in these unexpected situations. One of the easiest ways to save a little money at a time for emergencies is to stop eating out for lunch or dinner two days a week. Take that money (about $15 per person in your family) and move it directly into your emergency fund. You’d be surprised at how quickly those dollars add up.


Incorporate Predictable Expenditures into Your Budget. Predictable expenses include things you pay regularly, but not weekly or monthly. For example, property taxes or auto insurance premiums are due either quarterly or semi-annually. You are probably aware of these expenses and know they are coming up soon, but aren’t exactly sure when. This is where a payment or bill calendar comes in handy. Create a spreadsheet or print out a physical month-to-month calendar that allows you to keep track of bills, regardless of their payment frequency. Forcing yourself to stay in-the-know when it comes to your finances and bills is a great (and necessary) step toward financial health.


Reduce Some of Your Known Expenses. It’s okay to cut down on some of your personal luxuries in order to plan ahead for a rainy day. For example, if you’re able to reduce transportation expenses or utilities, make that change as soon as you can. Take stock of your discretionary spending and the frequency of your discretionary purchases. If you’re buying new clothes twice per month, make a note in your budget and attempt to shop only once per month.


Unknown expenses or emergencies do not make planning or saving easy. If you’re short on funds and are looking for assistance with a one-time expense, avoid going into credit-damaging debt. Instead, contact EmployeeMoney. A quick qualification process and funds are deposited directly into your account within 48-hours. Financial relief and wellness are around the corner. Next time disaster strikes, you can be ready with EmployeeMoney.