Comments on: 4 Unexpected Expenses You Can Count On

By: Penny Farthing

Penny Farthing — Sat, 03 Oct 2009 11:03:33 +0000

Good post. I’ve been using a similar system for a few years; my annual bills fund. I work out approximately how much irregular expenses like car repairs, insurance renewals, and other irregular items are likely to be for the year, based on previous years, add a bit for the unexpected, and then set up a direct debit to an annual bills fund within my mortgage offset account. Then I just transfer back whatever is needed when these bills come up. I treat saving up for items like cars or home improvements separately. As this account is specifically for money to be spent, it is also much less demoralising than having to raid a true savings account!

By: 10 Personal Finance Blogs You're Missing Out On — Automatic Finances

10 Personal Finance Blogs You're Missing Out On — Automatic Finances — Thu, 02 Jul 2009 18:07:19 +0000

[...] 4 Unexpected Expenses You Can Count On [...]

By: Wojciech Kulicki

Wojciech Kulicki — Fri, 01 May 2009 23:39:43 +0000

You’re absolutely right! In fact, since we’ve started saving for all of these, we’ve noticed that we spend less on gifts overall, simply because we don’t want to let all that saved up money go into a non-essential. We’ve started to “skim” the gift pot and move the money to other needs.

By: MoneyEnergy

MoneyEnergy — Fri, 01 May 2009 23:23:26 +0000

Good points. You’re darn right that most of these are not “unexpected” expenses. Only to those who don’t plan for them! Note how some of these (health care) are essentials while others (gifts) can be good areas to frugal-up on.

By: Weekend Linkage: Dave Ramsey, Market Timing and Jim Cramer — Automatic Finances

Weekend Linkage: Dave Ramsey, Market Timing and Jim Cramer — Automatic Finances — Sat, 18 Apr 2009 13:41:32 +0000

[...] Fiscal Fizzle, Wojciech Kulicki lists 4 Unexpected Expenses You Can Count On. This is a great list of those once-in-a-while bills you should have a separate fund [...]

By: Wojciech Kulicki

Wojciech Kulicki — Sun, 12 Apr 2009 16:57:31 +0000

Tom – All very good points! The nice thing about an unexpected expense fund is that is overlaps in many ways with an emergency fund, so you’re not really “adding” unexpected expenses to your budget, as much as merging it with your current emergency fund savings. I have both in any case, since some expenses are still unforeseen, but since starting my unexpected fund, I don’t put as much away for emergencies.

I see your point about health care – we’re both young and sometimes it feels like we rarely get sick. Although I hope that’s always the case, I know that as I get older, medical expenses will rise as my body needs more maintenance. If anything, I’m just saving ahead for that eventual expense so that the financial shock is not as great.

Thanks for stopping by.

By: tom

tom — Sun, 12 Apr 2009 13:47:16 +0000

For most of us, probably auto repairs is the most important hence why we need an emergency fund.
My dad just did maintenance, unexpected on the car and I split the cost for it with him. thank goodness I had an emergency fund.
But it only goes to show me that 1000 saved up is just not enough, at least for me.

Next would come electronics such as laptop or any computer hardware since I do a lot of work using computers. This would include funds for a replacement laptop, internet connection, printer and/or cartridges, shredder, etc.

Health care is not a big issue for me because I haven’t been sick in a very long time but I would still say it is good to have a few hundred bucks saved up.

Either way, I really appreciate you putting together this lost, it got me thinking more about unexpected costs.

By: Wojciech Kulicki

Wojciech Kulicki — Fri, 10 Apr 2009 12:53:21 +0000

Thank you both! I think the theme is that we can never be too prepared…even if it seems like things are running fine, keep on saving. Good upkeep of our tools/health/assets is certainly a start, but sooner or later all things will catch up with their lifespan and we need to splurge to keep functioning.

It’s hard to think that way when times are great and everything works just fine, but when things go bad…hindsight kicks in.

By: Ken

Ken — Fri, 10 Apr 2009 11:52:23 +0000

Great post. I posted on emergency funds I guess 5 or more times. Murphy comes to visit us all and we best be prepared or we will remain dependent on credit cards. Having the $1000 emergency fund recommended by Dave Ramsey is the FIRST step any wise person make regarding their money.

By: Judith

Judith — Fri, 10 Apr 2009 01:38:01 +0000

And when the unexpected happens it does in groups. My car needed repair, my puppy needed to go to the emergency vet and my thermostat stopped working, all happen within two weeks from each other. It would help to budget for the unexpected.

Thanks for the useful tips…