Planning for the Unplanned

As we pulled out of the driveway it was apparent that something was wrong with our vehicle.  A grinding sound, like metal on metal, resounded throughout garage.  After a quick check around the exterior of the car we knew this was something a mechanic would have to explore.  A few hours later we were faced with several hundred dollars worth of automotive repairs.  While no one likes to part with that kind of money, we were prepared.

Several years ago, a brief segment on a radio show challenged listeners to prepare for those “unexpected, but expected expenses.”  As we listened to the broadcast, the financial guru used the example of a vehicle.  Everyone who drives will eventually have maintenance and repair expenses.  This is not “if it will happen” but “when will it happen”.  When these kinds of expenses arise they may be unexpected in the moment, but we can foresee them coming as part of life.  His answer?  Set aside funds to offset the blow in certain categories. 

We adopted the principle the radio host talked about and began setting aside funds in order to plan for the unplanned.  Here are a few of the areas we have committed to prepare for…

Auto Maintenance and Repair – Oil Changes, scheduled maintenance, and the occasional repair are always associated with driving a vehicle.  This is especially true of a car as it ages.  If you put aside a few dollars each month you can offset the blow that these kinds of expenses make to your budget.

Health Care – You and/or a family member will get sick at some point in the next 12 months.  Hopefully you have insurance to help with the expenses.  Still, co-pays and prescriptions can add up quickly.  If you put aside funds ahead of the sickness, it will help you avoid financial heartburn when the healthcare bill comes.

Occasions – Whether it is school supplies at the beginning of the year, travel during the holidays, or a gift for a wedding you can count on certain occasions that will impact your budget as well as your calendar. Begin looking at your calendar to count the cost.  As you identify costly dates months away you can plan expenses accordingly.

It can be financially jarring to take on an expense that you were not planning for.  While we cannot foresee every surprise that comes our way, we can still count on life’s inevitabilities.  When we plan for these moments we provide a more stable financial base for our families and ourselves.