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Unexpected Expenses

by Michael
(Lagos Nigeria)

I have newly started budgeting but my problem is how to deal with unplanned needs that arises from relatives, home, church and even personal sometimes. I need help. Michael

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May 18, 2011
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Expect the Unexpected
by: David Kimball

Hi Michael and thanks for your question. The best way to plan for those unexpected expenses is to well ... plan for those unexpected expenses. OK, that may sound too simplistic or flippant but it is the ONLY effective way to do it.

Here are three ways to carry that out:

1. Create an emergency fund of at least 3 to 6 months of living expenses.

2. In your newly formed personal household budget, create an Unplanned Expenses category specifically to account for these things you described.

3. Learn to say no. I tell my clients that they can spend their money on anything they desire ... as long as it is in their budget.

I trust this helps, Michael, and great job getting started in the right direction!

David

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