Identifying Surprises from Last Year

Surprises can be fun and exciting unless you are talking about unwelcomed surprises especially in a budget. Susan Schmidt says, “I didn’t expect the TV to get broken this month. But because I had my emergency fund in place, I found my self enjoying the process of researching product features and finding the right sale for me! There was no panic and I actually found I could do without the TV while searched for just the right one.” Those unexpected budget surprises are Murphy’s way of trying to get in your head and push you to make unwise choices. Your emergency fund is what puts Murphy in his place. Take a look at last month’s budget or last year’s budget and find all of the unexpected surprises. Take an average of what you spent to cover those expenses. Check your budget for a line item for the unexpected surprises. You may need to adjust the amount based on your current condition. Consider things like, is the car in need of major repair in the near future, do the kids need new summer clothes, are the kitchen appliances going to be replaced soon. These are all things we don’t like to think about, but if we plan for them, then putting a little extra away each week will get us closer to locking up Murphy for good!