Yusra3
VIP Contributor
Life is completely unpredictable - some of its occasions are pleasant whereas others are dreadful. Sadly, these unexpected costs that come along with unforeseen circumstances are a heavy financial burden to bear. Whether it is a surprise car repair, medical bill or home repair, these expenditures can be a problem for your budget if you have not planned properly. It is always good to have savings set aside to cater for the unforeseen expenses; this will help you to avoid getting into debts. It is essential to keep in mind that it is not good to create an unexpected budget. Here are some tips for budgeting for the unpredictable:Here are some tips for budgeting for the unpredictable:
1. Take a look at your past records. Review bank/credit card statements for the last 1-2 years. Add anything you unexpectedly paid for. Delaying care that is timely is especially difficult when one gets emergency vet visits or car which fails; avoidable appliece replacemenyt and home repairs. This will help you understand the kinds of and probability of the unexpected expenses that may be on your way.
2. Open an account to which you will be depositing only money set aside for accidental expenses. ** So if you save money in an account or in a money market fund you will have a safety deposit box for your non-planned expenses. Your building-up fund account should be close to payday instead let the amount of $25-$50 get transferred automatically - in the long run you will notice the positive effect.
3. At least 3 - 6 months expenses should be built up. This gives you enough money that could be used to pay for repairs or medical expenses. It not only guarantees that you do not have to borrow money when the unthinkable happens, but it is also a saved piece of mind. Budget with a goal of being able to save 6-12 months worth, based on your comfort level.
4. Reducing expenditures on non-essential items. If you save some more money by cutting back on discretionary spending, you will be able to speed up the process of building your emergency account. Discover and separate the needs from the wants for you cutback the extra spending on dining, entertainment, and the other things.
1. Take a look at your past records. Review bank/credit card statements for the last 1-2 years. Add anything you unexpectedly paid for. Delaying care that is timely is especially difficult when one gets emergency vet visits or car which fails; avoidable appliece replacemenyt and home repairs. This will help you understand the kinds of and probability of the unexpected expenses that may be on your way.
2. Open an account to which you will be depositing only money set aside for accidental expenses. ** So if you save money in an account or in a money market fund you will have a safety deposit box for your non-planned expenses. Your building-up fund account should be close to payday instead let the amount of $25-$50 get transferred automatically - in the long run you will notice the positive effect.
3. At least 3 - 6 months expenses should be built up. This gives you enough money that could be used to pay for repairs or medical expenses. It not only guarantees that you do not have to borrow money when the unthinkable happens, but it is also a saved piece of mind. Budget with a goal of being able to save 6-12 months worth, based on your comfort level.
4. Reducing expenditures on non-essential items. If you save some more money by cutting back on discretionary spending, you will be able to speed up the process of building your emergency account. Discover and separate the needs from the wants for you cutback the extra spending on dining, entertainment, and the other things.
