Right now you might think you are budgeting for everything for your family. With winter approaching you are probably thinking about storing extra food, or adding extra oil to your oil tanks. Did you know that more and more people are being blindsided by unforeseen expenses however? These are expenses that can be easily prepared for.
For example, in the summer months you could prepare your extra budget for covering your heating and your electricity with your energy services company. In the lead up to Christmas, you might think about budgeting extra money for gifts and unexpected expenses such as family descending on you and wanting to stay with you for a few weeks. Either way, if you know what expenses you should be considering, you can be better prepared. Here are the top expenses you should be planning for no matter what.
- Your car breaks down. You expect to shell out your money for gas and routine oil exchanges and you expect your car to need new brake pads when it happens. You might not expect to have to pay for an accident, however, nor would you normally consider the fact that you might have to pay for new tires at all. If your car is an older model or prone to issues, you may want to keep even more money to one side.
- Health expenses. It is winter, so you can expect accidents to happen and people to get sick. We get sick without planning it, because if we could plan it nobody would plan to be ill at all. It’s impossible to predict your future health issues, which means it’s also impossible to predict future health care costs. It’s always smart to make sure that you have enough savings to cover your deductible however so figure out what that is with your insurance company and keep that money to one side.
- Costs relating to your house. It is smart to make sure that you have at least $5000 put aside for your home’s emergency savings fund. This is always good for unforeseen expenses, but if your house is older and it’s in more need of work, you should ensure that you have more to cover it. The electricity could break down, pipes could burst in the walls if they haven’t been treated before the winter, the basement could flood. You need to make sure that you have expenses covering all of these costs.
- Tuition costs. Tuition is the priciest thing that parents can ever pay for, but if it’s you that is studying you might consider how much it would cost you to do that per unit. There are plenty of fees that are involved in education, so ensuring that you have these ready to go when you need them is a very smart thing indeed.
Your costs are going to go up through the years and ensuring that these are as covered as possible is important if you want your home to run smoothly and stop your bank from chasing you!