Expense 4-Health Care: Like all of the other expenses discussed in the three previous weeks, health care can be an unpredictable expense, even when considering the relative “protection” provided by health insurance. Expenses that must be covered are deductibles, preventative or elective care, vitamins and minerals, and prescription costs. Are you ready for these to pop up at any time? Your body doesn’t know if you’re short on money this month – it will get sick and need care regardless of how prepared you are. Continue reading “Unexpected Expenses You Can Count On: Final Week of a 4-Week Discussion”
Expense 3 – Appliances, tools and electronics: The reality of life is that things break. They do so frequently, often in bunches, when we least expect it, and at the most inopportune time. That’s why it’s important to be prepared for the replacement cost of critical appliances, tools, and electronics. Consider the lifespan of a typical laptop – 3 to 5 years, perhaps. Are you prepared to purchase a new computer once your current one breaks down? Continue reading “Unexpected Expenses You Can Count On: Week 3 of a 4 week discussion”
Expense 2-Gifts: Have you ever said to yourself- “No, I can’t afford to buy that gift.” It is human nature to please others and more often than not, we are going to buy that gift for someone we care about. Gifts are sporadic and unpredictable. You may forget someone’s birthday or wedding shower until the last minute; and you WILL buy that gift no matter the “unexpected” expense.
This is why a lot of people go into debt at Christmas. They haven’t prepared or saved for it. This can be a very dangerous situation concerning credit card debt, and can spiral out of control rather quickly, not to mention the mounting interest rates on those cards. Continue reading “Unexpected Expenses You Can Count On: Week 2 of a 4-Week Discussion”
There are budget categories in life where sooner or later, money will be spent. It may be $500 on a repair this month, and $400 on a new product next month. Over the course of the year, we can average out and prepare for these expenses.
There are four categories of unexpected expenses that will be addressed one at a time over the next four weeks, so be sure to keep up with us for these valuable money tips!
Expense 1- Auto Repairs: Auto repair costs, or at least “reasonable maximum costs” can be predicted with relative accuracy based on the age of your vehicles and whether warranties continue to be in effect. For an 8-year old car, expect to spend up to $1,500-$2,000 on repairs and regular maintenance, and would like the car to make it beyond 100,000 miles. For a 3-year old car, the number is much smaller, perhaps $500 per year for things like tires and oil changes, although with the warranty now expired, you will need to re-consider this amount. Continue reading “Unexpected Expenses You Can Count On: A Four Week Discussion”