What You Can Do Right Now
Information is great. But taking small steps now can lead to big changes.
- Make “unexpected expenses” a part of your budget.
- Collect receipts for last year's expenses. Highlight expenses that don't happen every month. This list is the beginning of your “unexpected expenses” budget.
- Next Week
- Once you have identified your past “unexpected expenses,” estimate their costs and timing. This will give you an amount per month that you should save.
- During the Next Few Months
- Start saving the monthy amount you identifed in your budget review.
- Recognize that basing future expenses on past expenses only provides savings guidelines. But, this method may keep an unexpected expense from becoming an emergency.