Unexpected expenses — like car repairs, home repairs or medical bills — can pop up at any time. If you’re already having trouble making ends meet, these surprises can really impact your budget. But how do you plan for unforeseen expenses, since you obviously can’t see them coming? Here are a few ideas that can help you prepare for emergencies.
Plan for the Unexpected
You may be able to predict exactly what’s coming, but it’s likely that something unexpected will cost you some money in the coming year. That’s why it’s important to save throughout the year so you’re prepared for emergencies.
If nothing unexpected happens, that’s fine too. You can always put any extra money toward future goals, like paying off your car loan or saving for a down payment on a home.
Make Saving a Habit
It can be easier to put money away if you don’t have to think about it. When you don’t see any extra cash in the account you use every day, you’re less likely to overspend. Here are a few things you can try:
Set up an automatic transfer in Online & Mobile Banking from your checking account to your savings account each time you get paid.
Set up your direct deposit so that part of your paycheck goes directly into your savings account.
Build Unexpected Expenses into Your Budget
When you’re creating a budget, it’s pretty easy to add your monthly bills and other regular costs. But accounting for irregular or unplanned expenses can be more challenging. Here are some things that budgeters often forget:
Home maintenance and repairs
Property taxes
Car maintenance, repairs and registration fees
Medical copays and things like braces and glasses that aren’t always covered by insurance
Seasonal expenses, like holiday travel, school supplies and summer camp for the kids
Gifts
Pet care and veterinary bills
Getting Started
Many experts recommend having enough money in your emergency fund to cover at least six months’ worth of expenses. If that seems daunting, you can start with a smaller goal. Take a look at our emergency fund boot camp page for more ideas and suggestions.
If you need help finding ways to save, you can always talk with one of our Money Makeover experts at any VyStar branch, or learn more about free financial counseling services through the BALANCE program.