No Unexpected Expense: How to Protect Your Budget

Counting the cost of the unexpected expense means having the right plant that you will work so you can set aside the money you will need.

There always seems to be an UNEXPECTED expense that pops up and messes with the budget that I have painstakingly put together. 

Last month, it was an emergency room visit. 

This month, the tires were for the van. 

Who knows what tomorrow may bring?

But the fact that I’m already looking at the possibilities of tomorrow means that nothing is completely unexpected, and I have to make a budget that plans for these events.

How to Protect Your Budget from the Unexpected Expense

Since my budget includes a high estimate of what I will owe each month. I researched the past year of expenses and used the highest one to set my budget. I am going to use the overage to prepare for the unexpected. 

If I have budgeted $250 for electricity and the bill is only $180, I will write a second check for $70 and put it in savings. 

The same goes for my car expenses.  If I budget $450 and only spend $375, then I’ll make out a second check for $75 to go into savings.  I won’t wait until the end of the month because somehow I always manage to spend the extra on other stuff.

How Others Protect the Budget

I have a friend who takes it a step further.  She has her savings broken up into categories – home repair, car, vacation, medical, etc.  She only uses the home repair money from her savings for repairs on the home.  I’m just not quite that organized yet.  Getting it INTO a savings account will be exciting enough for me.

What works for you? The secret to protecting your budget from that unexpected expense is to find what works for you. No matter how good it is, if you don’t work the budget plan, then the plan won’t work.

Embracing the Unexpected

There are no true unexpected expenses.  You know the car is going to need new tires.  The kids are probably going to have to visit the doctor.  The holidays are coming up at the same time EVERY year.  Instead of being shocked when you have to make a big payout, just prepare ahead of time by saving here and there.