Preparing for Life’s Unexpected Expenses

We have been blessed with good health since having children, however, that doesn’t make us immune to everyday illnesses and other household expenses that crop up. Our driveway is crumbling, our car is rusting, and the fridge was leaking water. Which one will go first? Or will I get a surprise phone call about a playdate friend who just tested positive for strep or something?! Am I right!? So… Here’s my tips for preparing for life’s unexpected expenses.

Preparing for Life’s Unexpected Expenses

Plan for the unexpected! I know, I know, they are called “unexpected” for a reason. But while you may not know what or how much the unexpected event will cost you, rest assured, these events do happen! Dave Ramsey’s recommends a $1,000 “emergency fund” be set aside from the start, and that’s a wise idea so that when something unfortunate crops up, you already have money to start covering it.

Also, try building some margin into your budget $50-200 a month if you can. If you have a budgeting program on your computer, there are ways to “hide” those amounts, so they accrue behind-the-scenes month to month. Building in a small amount that add up monthly can create a good cushion for larger life events like loss of a  job or unexpected pregnancy.

Know who you can count on. Whenever unexpected expenses arise, there are what I call “fallout” expenses. Like needing to hire a babysitter so you can take your kids to the doctor (or yourself), or paying for a hotel get the house repaired. Talk to friends and relatives; team up and let each other know that should an emergency arise, you are there for them (and vice versa) with free babysitting services or a place to crash for a night or two. Networking can help you avoid extra expense on top of the situation you’re already dealing with.

Stay organized. Whether you need to organize receipts, bills, records, or supplies. Having access to information and supplies quickly can help you avoid extra expenses. Not being able to find a receipt for reimbursement, or double-buying medicines and supplies can add up. Now is the time to organize regular bills and information. When a situation arises, quickly grab a new folder to keep track of that particular event.

Know your insurance plans.  Many unexpected expenses come from not being full aware of your insurance plans. Whether home, car, or health care. Because a lot of unexpected expenses arise around medical issues, it’s really important to know your health care plan.

• Understand the difference between in-network versus out of network costs (which can be thousands of dollars different!).
• Also, be aware of whether you need referrals or not. Seeing a specialist with a referral can incur additional costs!
• Know when visiting an urgent care clinic is cheaper than a trip to your regular doctor’s office

You may not be able to avoid every cost surprise in life, but you can be preparing for life’s unexpected expenses right now, so you’ll be ready when they do pop up!

Sponsored by United Healthcare; I received compensation for sharing this message. All opinions are my own. I am not responsible for fulfilling giveaway prizes.