20 Unexpected Expenses
As we go throughout life, there are unexpected expenses that come up. Unfortunately they come up more often than most of us would like. Whether it’s an unexpected medical bill or a leaking roof, there will always be “something” that we have to pay for that we didn’t anticipate beforehand.
Today I want to share 20 unexpected expenses with you. This is not to make you feel bad about all the stuff that goes wrong in life, but to put unexpected expenses in the forefront of your mind so that you are able to prepare for them. Sometimes I trick myself into thinking that my car will never break down, that nothing will break in my house, and that everything will go as planned. Brainstorming this list made me think of all the things that could potentially come up that I should really consider setting aside money for.
- Trip to the emergency room
- Surgery that maxes out your insurance (happened to me last year – read about it here)
- Sick Pet
- Laptop breaks
- Car breaks down and needs a tow
- Car repair
- Need to purchase a new car
- Plumbing problem(s)
- Electrical problem(s)
- Damage to house from termites/water/etc.
- Clothes for a new job that requires you to dress up every day
- Get sick and miss work when you have no paid time off
- Cell phone breaks
- Golf clubs stolen – happened to me :(
- Expenses for your kids extracurricular activities (I heard these can get pretty insane)
- Spontaneous casino trip – Hey I didn’t say these were all NECESSARY expenses, plus what if you win?!? ;)
- Washer/Dryer/Fridge/Dishwasher/Oven breaks down
- Destination Wedding for friend/relative – Definitely the further in advance you know about it the better…I had more than a year to save and prepare
- Family emergency
- Gifts for baby shower, wedding shower, housewarming, etc.
There are a number of ways you can prepare for unexpected expenses. One is to save more money. Saving is sometimes an uphill battle, because an unexpected expense comes up that wipes out all your work. Consistent savings, though, will help you to build an emergency fund over time.
If you want to aggressively save money and your regular income isn’t worth it, there are many different ways to increase your income. This could be in the form of freelance work, a second job, or going back/finishing higher education that will allow you to
The reality is that unexpected expenses will happen whether you like it or not. Many young adults (especially some of my friends) think they will never have anything go wrong health-wise. I encourage them to put money in an Health Savings Account (HSA) in case something major does go wrong, but usually they don’t listen. Even worse, I think far too many young adults go without health insurance. This is a terrible idea because a single unexpected claim can easily bankrupt you.
What unexpected expenses have you run into? Do you plan ahead for them?
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I would argue that a lot of those are expected expenses!
My current laptop is two years old and I won it in a raffle, so I fell it is on borrowed time. I also worry about a major repair on our rental property. Because I too love my HSA, I keep some money in there for medical emergencies, so at least that is one thing I'm not too worried about.
The new car one happened to us not so long back. We had an unexpected new baby in the family and our small car was no longer enough. I think its hard to expect an emergency fund to cover something as large as that. We took a loan which got repaid with a few months of purchase.
I do worry about expenses such as you listed above as our budget is quite tight right now. Fortunately we do not have to worry about some of them, such as plumbing or electrical since we are renting a newer house and any issues are covered by the management company.
Ugh - #13 happened to me this last week! If you aren't sitting on an upgrade discount or are forced to update your plan or renew a contract, a new phone can really get expensive. I should also start saving up for when Girl Scouts come knocking... but I guess that's expected. Great post, David!
@Jennifer Willard Sorry to hear about your cell phone : / Hopefully it wasn't TOO expensive to replace. I can't wait for girl scout cookies! So good!
Sick pet? Yup, that happened to us last year. My cat needed surgery because he accidently ate something that got stuck in his tummy and it wouldn't process :( Definitely an unexpected expense...
@therandompath Do you mind me asking how much it cost? We have an elderly cat (20+ years old) and I'm a bit worried about a major medical cost. Though at that point do you just put them down? : /
@DC @ Young Adult Money @therandompath
It was around $850 or so because it was surgery. They had to operate to get out whatever it was he ate. Poor thing! But he was a young cat, not even 2 years old so I know with an older cat, that may be a different decision :(
Well obviously one now is getting medical care for my shoulder, which who knows might lead to surgery. I also have a very old car, and an older pet. The pet one can really be an unexpected surprise. That's why in my recent article I talked about why I want to use my budget money for my medical expenses and not my emergency fund. I want to hang on to that thing for dear life in case the s really hits the f sometime down the road. :)
One thing to also add is loss of income, or as a freelancer, dry months of income! Check. Check.
Sick pet, check. Flooded washer and dyer and car after hurricane Sandy, check. This past year we had multiple unexpected expenses. Thankfully they weren't "emergencies" because we had an emergency fund to cover them.
@StudentDebtSurvivor That's great. We have been waiting on getting a dog until we are certain that we have money set aside to cover expenses if they get sick. I know it can get quite expensive...
Golf clubs stolen! That's the worst one on the list. ;-)
My neighbor had his golf clubs stolen. At a consignment shop three weeks later he saw his clubs for sale. Amazingly, the thief (a neighbor kid) used his own name on the consignment form. Yeah....it wasn't pretty when the cops came for the neighbor kid.
@AverageJoeMoney That's awesome that they found who stole them. I never did...
I thought you lost the money if you don't spend your HSA? I try to keep $2,000 pretty liquid, to weather the storms, last Christmas the heater broke in my rental, the poor tenants stayed a week without heat but not because I couldn't pay, because no one would come during the holidays!
@RFIndependence Sucks for your tenants! And no, not with the HSA accounts I am familiar with you never lose your money. At least with the one I have, it never goes away even if you leave the company. You can even invest it and none of the gains are taxed as long as it is used for qualified medical expenses, even if those expenses happen 30 years from now!
I hate unexpected expenses! We need to replace our guest bathroom toilet, which will cost around $300. It's leaking and we just want to replace the whole thing. I never realized how expensive toilets were!
@SenseofCents Hmmm ours was only ~$120, and there was one that was really nice on sale for $75. I guess it depends on where you buy it from or what you are looking for?
@DC @ Young Adult Money The cheapest one we saw at Lowes near our house was $200. I'll definitely be looking around though for one that is 120!
I almost chose the least expenses health insurance offered by my employer, then realized I got to the hospital all the time with the activities I participate in. I guess I could still consider them "unexpected"... right?
Arrgh! Everybody hates unexpected expenses (except casino trips...usually)! Luckily, I've got an emergency fund now to take care of those darn things.
@GregatClubThrifty Haha yes though I haven't gambled in a long time...I usually feel too guilty about spending money there. Unless I win of course ;)
I could go for a spontaneous casino trip. I haven't been for years and the last time I was there I won a few hundred dollars playing poker :)
@MonsterPiggyBank I used to play poker a TON. Took up hours and hours of my time, and in college I even went about once every two weeks. I haven't played live poker in over a year and a half now, which is strange for me. I may play a few tournaments this Spring as the budget (and time) allows.