As you gain momentum on your budget, prioritize your expenses, and pay off your debt you will want to include budgeting for the unexpected.

So how do I budget for something that I do not know is coming?

The easiest way to know what that means to your budget is to look at your past expenses.

Look for those large expenses that were really a setback at the time.

Maybe they were one-time expenses like needing to replace your furnace that should be good for the next several years.

But consider similarities or relatively common ones like needing to replace an appliance, car repairs, medical expense, loss of job, etc.

Look at the last couple of years of payments, it could be bank statements, receipts, credit card statements, or whatever you have used to cover those unexpected expenses.

Then add that amount to your current budget.

That way, when (not if) something comes up, you will not be as stressed because you planned ahead and set some money aside for such a thing.

#financialfriday #financialfreedom #budgeting

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