After Budgeting, How Do I Deal With Unexcepted Expenses?

[Davidvictorson]

The following actions are basic steps in budgeting:
- Track your expenses and income for one month
- Create the categories that fit your life
- Set some short-term and long-term financial goals
- Cut certain areas to make those financial goals possible
- Adjust your budget according overtime.

Even if I take all of these steps, "unexpected expenses" still throw off my budget for me. I will keep track of all my spending and costs, create a budget, and begin adhering to it, but before you know it, a huge unforeseen expense will ruin everything, leaving me discouraged and not budgeting for a while. This usually occurs when I spend excessively in one category or another and realize that the budget isn't working, at which point I give up.

Suggest ways to deal with unexpected expenses?

www.investopedia.com/articles/personal-finance/100-budgeting-financial-goals/
www.nerdwallet.com/article/finance/short-vs-long-term-goals
mint.intuit.com/blog/budgeting/what-is-budget/
mint.intuit.com/blog/budgeting/budgeting-101/

[mk4]

It depends what the "unexpected expenses" are. If it's overspending on stuff, then you need to discipline yourself with your spending. On the other hand, if they're like unexpected medical bills and stuff, then there's nothing you can do but to try to increase your income.

As for being discouraged — if you don't budget, you're likely going to be in a far worse situation if you didn't budget.

[Anonylz]

Unexpected expenses will always ruin your budget plan no matter how good the plan was.
Sometimes I do set aside a small amount for unexpected situations out of the original budget because life is full of unpredictable situations.

[LoyceMobile]

You should expect the unexpected by including it in your budget. If you don't use it in the current month, you'll save it for next month to allow for bigger unexpected expenses.

[crwth]

Are you talking about emergencies? That will be part of the unexpected expenses that would come across your life.

Some of the things I can think of at the top of my head are the following:

• Repairs of any kind
• Medical Emergencies
• Inflation of prices

The best way to counteract this is to have a savings account that would help you to get out of these complex situations that you are facing. I'm hoping you'll be able to solve that.

[Beparanf]

First of all you should determine all those unexpected expenses coming from because you can’t fully prepared on it no matter how good you budget your money if the unexpected expenses is always greater to your total budget for a certain period of time.

Let’s say your unexpected expenses is coming from hospital bills. Maybe you should focus doing a healthy living or get a health card to cut expenses of you are being hospitalized too often. I believe dealing with the problem slowly before it come is the best way to counter it instead to wait for what’s coming and absorb it using your budget that didn’t prepared exactly to value of upcoming unknown expenses.

[dothebeats]

Stop getting eaten by consumerism and instant gratification. Idk what you mean by unexpected expenses. If it's for emergency and the likes, you should already have a separate fund for that to begin with. If it's for other things, always weigh in if it's really worth going over your budget and indulging at it for a time then skimping on the necessities next. A lot of people have enough money to get by every payday and still have something to save, but the problem is most are easily tempted by the new deals that brands are always getting out there and they tend to spend more than what they should.

Cut off from the indulgencies and focus on what's really importan and you'll be fine.

[Reid]

Unexpected expenses. I never knew I would deal with this kind of problem now especially with foods and necessary things getting expensive as economy won't stop sinking down. I don't like it, that's my first impression. It's stressful, it drives my head nuts as all I think is about how to fix it.
It keeps on coming unexpectedly right after you just finish fixing the other one.
I also tried to make a budget for it, but it leaves you having nothing more to put in your savings which I think is not a good sign. I like keeping cash near me but now it's getting lesser.

[Lucius]

I think that the answer to such questions is not easy to give, because even though as people we share some habits and have certain needs, there are still greater or lesser differences resulting from the cultural-geographical factor. What is normal for me in everyday life is certainly not for someone else, and that means that our living expenses are also different.

I will say that the only way to overcome such crises is that we must be ready to make difficult decisions. If this means that we have to give up visiting restaurants, cinemas and buying branded clothes, then we have to do it, no matter how hard it is. We put all the money we save aside and use it for exactly those unforeseen situations, thus avoiding them being a burden when they happen.

Maybe for some who have very little income and live in bad conditions, even giving up a lot of things will not help, and in that case, as someone already mentioned, the only solution is to find an additional job or a job that pays better. If even that is not an option, moving to another location or even another country with better living conditions should always be one of the options.

[teosanru]

The following actions are basic steps in budgeting:
- Track your expenses and income for one month
- Create the categories that fit your life
- Set some short-term and long-term financial goals
- Cut certain areas to make those financial goals possible
- Adjust your budget according overtime.

Even if I take all of these steps, "unexpected expenses" still throw off my budget for me. I will keep track of all my spending and costs, create a budget, and begin adhering to it, but before you know it, a huge unforeseen expense will ruin everything, leaving me discouraged and not budgeting for a while. This usually occurs when I spend excessively in one category or another and realize that the budget isn't working, at which point I give up.

Suggest ways to deal with unexpected expenses?

www.investopedia.com/articles/personal-finance/100-budgeting-financial-goals/
www.nerdwallet.com/article/finance/short-vs-long-term-goals
mint.intuit.com/blog/budgeting/what-is-budget/
mint.intuit.com/blog/budgeting/budgeting-101/

See there are 2-3 types of unexpected expenses that generally come in the way of a budget and the way to solve them differ as well.
The first and actual unexpected expenses are healthcare expenses like you got an injury or even worse got any hospitalization or even Death. Generally your Insurance should cover these expenses, I generally suggest people to buy Insurances available with OPD benefit as well. So you are reimbursed for almost everything.( Obviously upto a limit but it generally is sufficient). Second expenses are like some of your appliance got broke or some other repair of something you use. I generally recommend you keep a buffer of 10% in your total budget always for such expenses because these will always come you can never stop them ever. If they still exceed in some case I suggest you withdraw some amount from emergency fund but make sure to replenish it in the month there is a saving. Other than these rest are definitely the unexpected expenses which can be avoided so it's best to avoid them if it's not possible fit them in category 2.

[ethereumhunter]

It may be necessary to set aside a few percent each month for incidental expenses but once you do, you shouldn't use the money for anything other than incidental expenses. So for example, if you want to buy food or household needs, you may not use the money you have prepared for unexpected expenses. Do that and save it every month and don't use it if you don't have any unexpected expenses. Try not to overspend in one category or another and stick to those rules so they don't get in the way of your monthly spending plan.

[cryptomaniac_xxx]

I guess you also have to put aside budget for this "unexpected" bills? Or at least have some buckets for this kind of emergencies. And probably you are too focus on your budgeting that we all know that it's not going to be 100% foul proof, everything in life is not etch in stone. As the OP said, he will have to adjust so I think that will be the best approach here. I myself have been in this situation many times, and I'm thinking to make a loan or something, but I guess we have this local saying of to tighten your belt, so that's what I do in the long run. Cut expenses on X to be able to used it to A.

[bittraffic]

Does an unforeseen expense suddenly come forced you to sell coins you have been holding for a long time?
I am pissed thinking about it because it's necessary to sell because it needs funds to fix the car headlight caused by an accident. Dealing with it I guess is to just consider it spent for a good cause. Budget adjustment again.

[stompix]

Stop getting eaten by consumerism and instant gratification. Idk what you mean by unexpected expenses.

You go out with your shoelaces untied trip on the staircase, land on your head, and break 4 teeth, I had a colleague who chipped all his up incisors this way hitting the banister, although it wasn't the shoelaces it was him talking on the phone and searching for the keycard with the other hand.
Since it's an accident and no average insurance will cove these that go for 4x 500-1000 euros depending on the dentist and the damage.
Or, on a smaller scale, the never-ending feud between cats and tv sets, although thinking on how many youtube videos I've seen about that it stops being unexpected.

Unexpected expenses. I never knew I would deal with this kind of problem now especially with foods and necessary things getting expensive as economy won't stop sinking down. I don't like it, that's my first impression. It's stressful, it drives my head nuts as all I think is about how to fix it.
It keeps on coming unexpectedly right after you just finish fixing the other one.

Food prices going up is not something unexpected, everyone knows inflation was coming, and everyone knew that covid has destroyed all the logistic chains and affected manufacturing, inflation was the last on the list of "unexpected" things. Also, food prices are not unexpected, you shop for food every week at least, and you see the prices increase so if you think it over you plan your budget to contain a 10-2% rise next time, and you prepare for the worse.

Plugging in your vacuum cleaner and blowing up all your fuses and damaging other devices plugged in also, that's an unexpected expense.

[BigBos]

Suggest ways to deal with unexpected expenses?

So there is the importance of saving money for unexpected funds from a percentage of your expenses as a form of backup for expenses that are outside your control or a budgeted spending radar.
This usually happens due to being attacked by an illness that requires unexpected costs for both you and your family (sometimes we also have to provide assistance to them or will not feel ashamed when something bad happens), fatal accidents which are beyond our control. , a natural disaster that might damage your facilities enough that you need to repair it.

More precisely, prepare fund unexpectedly from your total spending budget, regardless of the percentage, you need to have it adjusted to the risk of your life.

[alastantiger]

I follow these steps when budgeting. Although now, I have some variants of it. As humans when whenever we decide to become intentional about our personal finance, we would definitely encounter unexpected expenses because we do not have super powers to foretell future events. To manage unexpected expenses, I review my budget. It entails cutting down some expenses that may not be so important or that can be move to another time. And where it is unavailable, I just increase the budget.

[Adbitco]

Hi mate i would love to know if you are married?
If yes, then it won't work for you. Sorry to say, I am married and i have tried several ways to cut down unexpected expenses but the truth remains the same. As an african man I am, i would draw my monthly budgets and targets but it will still fall back that some unforeseen expenses would arose from nowhere and befall me. So i discovered a very nice trick to overcome it.

First, what are your monthly budget at home or for yourself?
For instance, if your budgets at home is $200 per month or week or day, depending on how you makes your spendings and plans. For me i make sure that i don't spend above $250 per month. So what I mostly does is that, since $250 is my max, I will only free up $150 and reserved $100. Although the $100 will be later spent but must serve me till first week of next month. Then lastly try to reduce much friends because it must calls for hanging out, all this are also from your personal pocket and spending.
   

[lionheart78]

It is really challenging to deal with unexpected expenses but here are some strategies that can mitigate the impact of the said event in your budget:

• Build an emergency fund: save money and set it aside for unexpected expenses, this really helps when the needs occur
• Create a buffer in your budget: you can also set money for miscellaneous category aside from the emergency fund.  This will also help when unexpected expenses happens
• Prioritize your expenses: always prioritized the most important to pay, this will help you to manage your cash flows.
• Look for ways to cut costs: if you think that you can adjust the budget for other areas of your budget (haggling for cheaper service or product cost), cutting costs is another helpful method if unexpected expenses arise.
• Be flexible:  adjust your budget as needed.
• Seek help if needed: If unexpected expenses are causing severe financial hardship and you are unable to make ends meet, don't hesitate to seek professional financial help.

also, you can

• Work with credit card companies when an unexpected event occurs
• Sell your stuff to free up money for unexpected expenses
• Earn extra income to save for unexpected expenses
• Take on a short-term personal loan
• Re-budget to live below your means
• Ask for a paycheck advance to cover unexpected expenses

source:
https://www.takechargeamerica.org/tips-to-help-you-handle-unexpected-expenses/
https://www.usbank.com/financialiq/manage-your-household/personal-finance/how-to-best-handle-unexpected-expenses.html

[Husires]

I understand how you feel, but the nature of unexpected events can be greatly reduced. My advice to you is as follows:

• Socials: Most of the unexpected things come when you are socially active, you will be associated with more people (their behavior is unpredictable), which means that the probability of unexpected events will increase.
• Habits: Undisciplined people with habits are often more vulnerable to unexpected financial events.
• You pay people first: whether it's the government, rent, social services, and more.

As for the solution, it is to stay away from people, isolate, pay bills at the last minute, and focus on investing, especially if you are young and do not have many responsibilities.

[jackg]

If "unexpected spending" can relate to self sabotage then maybe you should start tracking your finances over different periods of time.

If over a year you're spending more than is realistic in a lot of categories, maybe you should remind yourself of that to stop you doing it as much (ie you keep 10%.of funds aside to invest but keep gambling with it or buying things you don't need in excess) - the longer the time period the more money you'll end up "wasting". If it's to do with inflation, it might be worth changing your perspective and waiting for when things become more stable before you try to grow your savings and investments as it'll likely become easier once prices are stabler.

You could also invest or save in a way that'll make you forget about it. Maybe you're focusing too much on money that you're making yourself want to spend it too (a regular investment might prevent against this if you see your available balance in your account as lower before you even start to budget).