Savings to the Rescue
Have you ever encountered an unexpected expense? I’m sure you have. We all have. Today, I encountered a large expense that (admittedly) I knew was going to come up sooner or later. However, I had no idea when it would hit.
I drive a 1987 Chrysler LeBaron. It’s a nice car and gets me from place to place quite nicely. However, it’s a little beat up and a lot old. I knew that it was going to have to have work done sometime this summer, I just didn’t know what was going to have to be done. Because I was anticipating problems, I’ve been saving for quite some time. Today the bill hit: $628. Ouch!
Fortunately, I was prepared. This expense was not a problem for me because I’ve been anticipating car repairs and saving for it. Thus, I’m quite pleased with myself and my budgeting. This should be a lesson to everyone, though, that you have to anticipate even the unanticipated in your financial life.
Andrew said,
August 4, 2006 @ 6:30 pm
I completely agree with you on this point. That is why having an emergency fund or money allocated for a specific event is so important. If we can predict some expenses we can plan for and those we have no control over we can make sure and have an emergency fund.