Save For The Unexpected

Summary

• I often see people miss their saving goals because unexpected expenses pop up, like a broken AC or car repairs. These things aren't truly unexpected if you plan for them.
• You should expect that about once a month, something may happen that costs money. Instead of being surprised, be ready for it.
• If you have a family, it's important to talk about money and be honest about possible expenses. Planning together helps everyone stay on track.
• Don't stress about figuring out what the emergency cost will be, just prepare a little each month for when it happens. This way, your savings plan stays intact.

Video

How To Take Action

I would suggest implementing a savings strategy that anticipates unexpected expenses. Think of it like this: about once a month, something will likely pop up – whether it's your car, house, or some other surprise. So, build a buffer into your budget. Each month, set aside a small amount specifically for these types of unforeseen costs. This helps you stay ahead and not disrupt your savings goals.

A good way of doing this is to have an open discussion with your family about finances. Sit down and map out potential unexpected expenses. This way, everyone knows what's going on and can prepare as a team. Communicating about money can lift a big weight off your shoulders and prevents future stress.

Don't worry too much about figuring out exactly what the emergency expense will be – just know that something might happen and you'll be ready for it. Keep it simple. Allocate a small, consistent amount from your income to a "surprise" fund. This approach maintains your savings intact and gives peace of mind.

Remember, it's all about planning and preparing for life's unpredictability without going into panic mode. This strategy is low-cost in time and money but can have a high value for maintaining financial stability and peace of mind.

Full Transcript

the reason that so many people don't hit their saving goals is because something happens right your AC breaks or when your carburetor needs to be replaced in your car or thing is is that things that are unexpected you can expect them to Happ you just don't know which one it's going to be because if you look at a year it's like about once a month you'll have something unexpected occur and you know it's going to cost you no I'm going to be clear if you got a family things like that it's fine you also have to just like type things now just a spouse conversation and well p is this the neighbor we need to be do we be carp like you have to be real about this and so it's just preparing for the expense not which expense it is