Unexpected expenses have been blamed for the downfall of many a budget, but just how many of those unexpected expenses were really unexpected? Probably not many of them. The simple truth is that when the refrigerator dies, the car breaks down or your dentist informs you of the need for expensive dental work, there were probably signs along the way to alert you that this day was coming.
It may have been the age of the appliance or vehicle, the development of a strange new sound or a persistent pain in one of your teeth. Whatever the sign, it was most likely noticed and ignored.
Taking this into account, an expense of this nature could not be considered unexpected, but rather unplanned for.
Wouldn't it be better then, to read these signs as a warning of expenses to come and to plan for them?
Anticipating Needs and Planning for Them
Anticipating needs has several advantages. It gives you time to save up for an expense – ensuring you are able to pay with cash, rather than credit. It avoids unnecessary stress; and it removes the pressure to buy now at all costs – allowing you to shop around for the very best deal and the very best product. In essence, anticipating needs puts you in control of the situation, rather than putting the situation in control of you.
Unexpected Expenses
So what about those expenses that truly are unexpected? You can plan for those too. Start an emergency fund today, and you'll have plenty of money to cover whatever comes your way – expected or not.
