#ActYourWage Series - “Expect the unexpected...expense“
Search By Tag:
Please reload

Stay Connected:
  • Facebook - Black Circle
  • Instagram - Black Circle
  • Twitter - Black Circle

#ActYourWage Series - "Expect the unexpected...expense"

February 12, 2017

So you've created your budget, have been monitoring your income and spending, and are starting to feel in control of your funds.  Things are going well...and then it happens.  The unexpected expense.  A few months ago, I enjoyed my very own unexpected expense in the form of a brand new furnace for my house (#HomeOwnershipProblems).  It happens to all of us.  So how do we all prepare for the unexpected new furnace, the 5 weddings you've been invited to this year, child activities, car problems, medical bills, or other unexpected cost?  Easy...expect the unexpected expense.  Here's my two cents.

 

Emergency Fund - There's no way around it.  If possible, it is important to set aside funds for unexpected costs.  Starting with $500-$1000 set aside for EMERGENCIES ONLY can help relieve a bit of financial stress.  Remember though, this is only a start.  You want to continue to build on this fund.  Six months to a year's worth of expenses should be what we all strive for to have set aside as an emergency fund. #FundGoals

 

Emergency Credit Card - Let's be realistic.  Please raise your hand if you have a fund that covers a year's worth of expenses ready to roll...3 months...1 month? Raise your hand if you've had emergencies that are capped at $500-$1000.  I don't even think a furnace exists for purchase and install for that amount.  Long story short, we are all at different points in our financial independence journey and... ALL EMERGENCIES ARE NOT CREATED EQUAL.  Having a credit card to be used for emergencies only can be another good option to prepare for unexpected costs.  You must be disciplined though and only use it for infrequent unexpected costs. #SwipeResponsibly

 

No matter how well you budget, watch every dollar that comes in and goes out, the unexpected expense is guaranteed to happen to all of us. Planning for these costs using the options above can help to take some of the surprise out of these emergencies. #ExpectTheUnexpectedExpense

 

 

Please reload

Site Disclaimer: All content provided on Cents Savvy LLC blog is for informational purposes only. The owners of this blog make no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owners of Cents Savvy LLC will not be liable for any errors or omissions in this information nor for the availability of this information. The owners will not be liable for any losses, injuries, or damages from the display or use of this information.

© 2019 by Cents Savvy Limited Liability Corporation

 Proudly created with Wix.com