Even if you no longer live paycheck to paycheck, life can still find a way to throw a wrench into your financial situation. You might have felt totally confident a week ago that you would come out ahead with enough money to put a chunk into your savings and still live largely. But then, the unexpected happens.
Unfortunately, you can't plan for every possible outcome. However, by knowing what could happen ahead of time this year, you'll be one step ahead and ready to take on any sudden challenge
What Are Unexpected Expenses?
These are the expenses you did not see coming and did not plan for. They may be recurring throughout the year, but sometimes, they are one-off expenses that dent your budget because they weren't planned for in the first place. Consider these examples of unforeseen expenses.
1. Job Transitions
Whether you get fired, demoted, laid off, or simply cannot stand to work at your current job a day longer, a change in your employment situation can lead to serious financial upheaval.
Sometimes, this can be a huge opportunity to find a better position in a job that will pay you far better than you could have hoped for. Other times, this is a long-lasting situation that can reshape your monthly budget. Either way, you must remember that no business you could work for is 100 percent stable. Always prepare for the worst while hoping for the best.
2. Home Expenses
Whether you own or rent your home, you will have to spend money now and then to improve your spot or fix damaged aspects of the property. Those expenses could come in the form of new appliances, weather or accidental damages, home renovations, plumbing costs, HVAC costs, outdoor upkeep (mowing, general cleanup), and many more. The best way to plan for these is to keep a portion of your budget aside for an emergency fund to get you through these tough spots.
3. Seasonal Expenses
With the changing of the seasons comes the changing of costs for a whole host of necessities. During the summer, your air conditioning and water usage can make your utility bills skyrocket, especially in the Texas heat. During the winter, your heating bills, cold-weather clothing, and weatherproofing for home and vehicle costs can increase just as much. The best way to prepare for this is to expect it every time. Even if you escape the season with lower costs than you thought, your budget should always allocate extra just in case toward this category.
4. Medical Expenses
No one can properly prepare for medical expenses. Recognizing that you can and will get sick at some point is wise. Sometimes, even a minor illness can take you out of work for a week and reduce the money you bring in that month. Simply recognizing this as a possibility and keeping that emergency fund handy can help mitigate the effects of potential medical expenses.
Needs Funds? Get a Personal Loan
5. Pet Emergencies
Just as people can have medical emergencies, so can animals. Maybe your dog ate something it shouldn't have, or your cat hurt its foot. People rarely think of pet emergency care as one of their expenses to budget for, and yet it can get expensive, easily costing thousands of dollars to treat animals for such problems.
You can look into getting pet health care insurance. Or you can set aside an emergency fund dedicated solely to your pets. Either way, you will be better equipped to deal with this high expense.
6. Kiddos
The moment you have a child, your life changes dramatically. And so will your financial situation.
The truth is, kids are expensive! If you know children are in your future, it's time you rethought your entire budget and prepared for anything life could throw your way with them in the picture.
You may need to pay for field trips at school or additional child care when you need to work overtime. Your child may need orthodontic care or new clothing when they hit a big growth spurt. Additionally, if you'll be welcoming a new child into your family, you'll need to consider financing and budgeting for parental leave.
7. Auto Expenses
Vehicles are often temperamental and can wreak havoc on your finances at the worst times. Maybe you've spent the past year saving up for a vacation when the engine in your car fails or your tires burst on the freeway. You have no choice but to spend that money ASAP. Automobiles also come with a number of smaller expenses for tune-ups, oil changes, inspections, registration, and more. As a vehicle owner, it is imperative that you always stay prepared for these expenses as they are usually right around the corner.
8. Gifts and Special Occasions
Your sister just got her degree and you need to get her something. Your parents just celebrated their 40-year anniversary. Or maybe you forgot your friend's birthday was this month. Your budget can suffer when you need to make a statement of affection or contribute to a celebration.
What many people do in these situations when they are careful budgeters is pull from what they would have otherwise spent on entertainment and any other nonessential categories of their budgets. This is a smart move, but you can better prepare by maintaining an additional category for gifts, parties, and more.
9. Unexpected Travel Plans
People plan their vacations months in advance, which allows them to get the best prices on lodging and entertainment. But what about unexpected travel expenses, such as going to a funeral after the sudden death of a loved one? You don't have time to shop around and get the cheapest plane ticket. You have a schedule, and you have to stick to it.
You can budget for such unexpected costs by building a cushion into your emergency fund. Unexpected travel plans likely don't happen often, so you won't need a huge fund to cover them. But it is reassuring to know that in an emergency, you can afford to get to your loved ones.
10. School Expenses
Even if your child attends public school, you will encounter lots of requests for money throughout the year. Just a few unexpected expenses that may come up include:
- Field trips
- Teacher gifts
- Sports equipment
Most of the time, you have little choice but to pay these bills. If you don't have cash on hand, that can be a problem because most schools don't accept credit card payments for such costs. When you budget for unexpected expenses in advance, you build a cushion into your monthly outputs to pay these unanticipated costs.
11. Seasonal Costs
If a blizzard dumps two feet of snow on your house and you don't have time to clear the driveway yourself, you may find hiring someone to remove your snow is necessary. Other seasonal costs may be repairing or replacing your roof, painting the exterior of your house or even hiring a landscaper to redesign your yard.
You never know what seasonal expenses you will incur. Even the most modest expenses may not fit your budget, but setting aside some funds to cover these potential expenses can help.
12. Unanticipated Rises in Your Bills
Have you ever received a cable or cell phone bill that jumped well above the previous month's expense? Have you endured an unusually hot summer that required you to crank the air conditioner way up, raising your electric bill? Such utility increases can come without warning, and you may not have enough in your monthly budget to cover them.
In this case, a personal loan could be the best solution. You can get the exact amount you need without borrowing more.
Cover Unexpected Bill Increases
When Your Budget Can't Cover Unforeseen Expenses
Sometimes, your monthly budget can't cover all the unforeseen expenses despite the amount of planning you did. If they all come up simultaneously, you may realize the money you saved isn't enough. In these situations, borrowing money is a great option. Whether through an emergency loan, a line of credit, or another financing option, arriving at this decision can feel intimidating. It doesn't have to be if you know who to turn to.
Atlas Credit offers financial solutions for customers in quick need of money. We have a safe, secure, and fast loan application process open to U.S. citizens in Texas, Oklahoma, or Virginia. With our hassle-free application, you won't have to worry about these common unexpected budget expenses.
Choosing a Trustworthy Lending Company
No one ever wants to be in debt, but sometimes, it can't be helped. What's more important is repaying your loans on time whether you have good, bad, or no credit. Once you've explored all your financing options, your next step should be finding a trustworthy lending company.
When choosing a lending company to take out a loan from, factor in these qualities:
- Good reputation: Just as companies screen loan applications, you, as a customer, should also be wary of the company you transact with. Look for one that has a good reputation and excellent customer service. Read testimonials if you can and look at what previous customers have to say.
- Physical office or address: Online transactions are convenient, but you'd want a company with a physical presence when it comes to money matters. Atlas Credit has numerous locations across Texas, Virginia, and Oklahoma where you can drop by for your queries and concerns.
- Quick and easy application: Customers sometimes need the money ASAP when they apply for loans. We work hard to screen online loan applications quickly. Once approved for a loan, we'll ask you to review and sign the agreement via eSign.
- Safe and hassle-free payment methods: Atlas Credit makes monthly loan payments effortless. We allow our customers to pay over the phone or mail a check or money order to our office.
As a consumer loan company, we aim to make it easy for customers to borrow money. We have various personal loan options, such as signature and starter loans. Dealing with unexpected expenses will be simple.
Now You Know Common Unexpected Expenses and How to Budget for Them
Do you think you have what it takes as a financial planner to budget for the unexpected? We sure hope so! And for all those unexpected expenses you can't afford, there's always the option of a quick and easy online personal loan from Atlas Credit. We can get you situated with a personal loan of up to $1,400 to cover expenses with the worst possible timing — apply online today!
