How Frugal Families Prepare Their Budget for Unexpected Expenses
Thursday, November 30, 2017, 6:00 AM | Leave Comment
It’s not always easy being on a budget. Some have no choice as a result of living paycheck to paycheck. Fret not, we have your back.
Read below for four useful tips to help you confront those unexpected expenses as they occur.
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Emergency Savings Account
No matter who you are, what your budget is, or where you live—get an emergency savings account. This might be obvious for some, but it’s easy to forget this simple precaution set against unexpected expenses.
Some people create two savings accounts: one for actual savings, and the other for emergencies.
While they’re both technically savings, it’s important to make the distinction between the two.
One is used for things you’re going to purchase in the future, such as a new car, house, or some other life-impacting event.
The other, which is our emergency account, is used for unexpected things, such as an emergency motorcycle repair job, an event that requires travelling, or anything that might sneak up on your wallet.
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Make Changes to Your Budget
Taking a few moments to sit down and write down your budget might seem like a final act, but as time passes you’ll find changes to your budget.
Maybe you picked up a new bill, or just finished paying off a motorcycle. If you’re fortunate enough to have extra room in your budget, try to use some of that extra money as a monthly payment to your emergency savings account.
If this isn’t the case, but an unexpected financial event occurs, you’ll need to find ways to adjust that month’s budget.
For example, say you were hit with a $100 speeding ticket. You may have to spend a little less on groceries or hygiene that month to pay for the bill.
The goal is to always be one step ahead. You don’t want to wake up one day facing a financial responsibility you can’t fulfill.
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Prepare for Unexpected Repairs
This might seem like an odd one, but it just so happens that 12.65 million families in the U.S. owned a motorcycle during Spring of 2017, according to Statista.
Certain companies, such as Harley-Davidson of Dallas, realize that when shopping for motorcycles, parts, or looking for a repairman, ensure that you’re getting the best bang for your buck.
Some repair shops, for example, try to tack on additional services and fees you don’t need.
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Clear out the Attic
While this is a much more temporary solution compared to the above tips, it’s still one worth considering.
Take inventory of your items and decide what can be let go. Next, use apps or websites to find markets to sell your items. Again, this is temporary; you’ll only be covered for that financial event.
We hope the above tips have given you a better understanding of how to handle unexpected expenses while living frugal. Stay tuned for more!
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Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.
