| Do unexpected car repairs, quarterly | | | | repair cost, try to anticipate their expenses |
| insurance payments or unexpected medical | | | | and list them somewhat earlier than you |
| bills find you hard pressed to squeeze even | | | | actually expect them to come up. Be sure to |
| one more dollar out of an already stretched | | | | update your calendar as you discover more |
| monthly budget? These are inevitable expenses | | | | expenses. |
| and sometimes can put you under a stress | | | | |
| condition when you need the cash to pay for | | | | 3. Plan-in the non-monthly expenses into your |
| these emergencies and unexpected expenses. | | | | monthly spending |
| But if you learn to budget for these | | | | |
| emergencies events and save in advance, you | | | | Based on the foreseen amount and anticipated |
| will be at a better position to handle them. | | | | amount that are captured on your calendar, |
| | | | plan ahead your non-monthly expenses into |
| Like most of Americans, you may stretch your | | | | your monthly spending. For example, you know |
| income to cover the regular monthly expenses, | | | | that your car insurance is going to due on |
| and always choose to ignore or not to think | | | | May, set aside small amount of your money for |
| about the brakes that are getting spongy or | | | | this purpose starting on February. And when |
| the plumbing that's beginning to make | | | | May rolls around you can transfer the expense |
| strange noises. And you end up a surge on | | | | to your spending plan and have money |
| your monthly expenses when the brakes wear | | | | available to pay it. Setting aside even a few |
| off and the plumbing break out. | | | | dollars each month for foreseeable expenses |
| | | | can prevent larger money woes ahead. |
| Planning and saving for those events can help | | | | |
| prevent an ordinary life from turning into a | | | | Sometimes, you may find it hard to set aside |
| crisis and can also cut down dependence on | | | | some extra money from your monthly income; |
| credit cards. Not having savings is a major | | | | but remember, repairing your car or paying |
| reason people get into debt. | | | | your insurance is not optional expenses and |
| | | | you need to spend it soon or later. So you |
| Here are some steps to help you get started | | | | need to find a way to reduce your monthly |
| to plan for your emergency fund, the | | | | expenses so that some money can set aside for |
| "Saving" fund which will help you | | | | emergency fund. You may need to track your |
| prevent financial disaster. | | | | spending; then, reduce or cut the optional |
| | | | expenses such as entertainment, dinner at |
| 1. Identify your irregular expenses | | | | restaurant and other impulse purchase, the |
| | | | money save from those optional expense can be |
| Analyze your pass credit card statement and | | | | put into your emergency fund. |
| checking account registers to identify your | | | | |
| irregular expenses occur throughout the year. | | | | In Summary |
| Examples of these irregular expenses are | | | | |
| property taxes, insurance premiums, | | | | One of the mistakes people make when trying |
| vacations, car tune-ups, holidays and | | | | to get their finances under control is not |
| birthdays. List down in a piece of paper all | | | | having an emergency fund on their savings |
| the expenses which are not spent in monthly | | | | account. The problem is that if you don't |
| basis. | | | | have money set aside for those unavoidable |
| | | | bills, you inevitably end up adding to your |
| 2. Write the anticipated amount on the | | | | credit card balance to cover the difference. |
| calendar | | | | |
| | | | The bottom line is to start today. It may be |
| In most of cases such as insurance premium | | | | discouraging at first if you find that you |
| and property taxes, you will know when the | | | | don't have enough money to fully fund |
| expenses are due to occur. And for those | | | | your emergency fund, but you'll begin to |
| unknown cases such as car repair and plumping | | | | succeed the minute you start the process. |