When it comes to budgeting, most people think of the usual expenses like rent or mortgage payments, utilities, food, and transportation. However, there are a number of unexpected costs that can arise at any time, and it’s important to be prepared for them. Here are 10 unexpected costs you should be budgeting for. Your finances will thank you!
1. Legal Fees
Whether you’re like the 43% of Tennessee residents going through a divorce, a custody battle, or modifying an existing parenting plan, it can be essential that you have an experienced family law attorney that can advocate for you, your needs, and your legal rights. Legal fees can add up quickly, and you’ll want to be sure you have enough set aside to cover the costs.
2. Brake Repairs
The braking system is one of the most important safety features on your car, and it’s important to keep it in good working order. If your brake pads look to be less than 1/4 inch thick, it’s a sign that they need to be replaced. This can be a costly repair, and it’s important to budget for it.
3. Food Poisoning
According to the World Health Organization (WHO), an estimated 600 million (almost 1 in 10 people worldwide) fall ill after eating contaminated food each year. Food poisoning can lead to a number of serious health problems, and it can be expensive to treat. Be sure to budget for any medical expenses that may arise if you or a family member becomes ill due to contaminated food.
4. Home Repairs
Your home is one of your most valuable assets, and it’s important to keep it in good working order. Unexpected home repairs can be costly, and it’s important to have some money set aside to cover them. Some common types of home repairs include roof leaks, water damage, and electrical issues.
5. Pet Emergencies
Pets are a beloved part of many families, and it’s important to take care of them when they’re sick or injured. Unexpected veterinary expenses can be costly, and it’s important to budget for them. Some common types of pet emergencies include broken bones, illnesses, and injuries.
6. Travel Emergencies
Unexpected travel emergencies can be costly, and it’s important to budget for them. Some common types of travel emergencies include flight cancellations, lost baggage, and medical expenses. Be sure to budget for any additional expenses that may arise if you have to cancel or change your travel plans.
7. Car Accidents
Car accidents can be costly, and it’s important to budget for them. Some common types of car accident expenses include medical expenses, car repairs, and legal fees. Be sure to budget for any additional expenses that may arise if you’re involved in a car accident.
8. Natural Disaster
Natural disasters can happen unexpectedly and can cause severe damage to your property and possessions. In the case of natural disasters like hurricanes, tornadoes, floods, and earthquakes, you may need to budget for repair costs, temporary housing, and the replacement of personal belongings. Some insurance policies do not cover natural disasters, so it’s important to check your coverage and budget for any potential out-of-pocket expenses.
9. Job Loss
Losing your job can be a major financial setback, and it’s important to be prepared for it. Job loss can result in a loss of income and a reduction in benefits, such as health insurance. Be sure to budget for additional expenses that may arise during a period of unemployment, such as job search expenses, and have an emergency fund to cover your expenses for a few months.
10. Health Issues
Unexpected health issues can be expensive, especially if they are not covered by insurance. Be sure to budget for out-of-pocket expenses such as co-pays, deductibles, and prescription drugs. Also, be aware that some insurance plans may not cover all treatments, so it’s important to budget for any additional expenses that may arise.
While it’s important to budget for the usual expenses, it’s also important to be prepared for unexpected costs that may arise. By budgeting for these seven unexpected costs, you’ll be better prepared to handle them if and when they happen.