Life's What Ifs


Planning and budgeting for life's normal living expenses, i.e.; food, utilities, housing, medical insurance, and transportation, is fairly simple. It is the little what ifs that can run the train off the tracks. Getting on board with a budget is great as long as it is realized that Murphy could buy a ticket and jump on the train anytime. This is the first step in planning for the unexpected.

Life throws out many challenges and being prepared is on of the most important things in having a budget. Irregular bills, such as; the ones due every six months, or the ones you can not predict, need extra planning for. Unexpected expenses like; auto repair, need of a new lawnmower, a roof that needs repair, an unexpected disability, or losing your job, can be devastating. ("Unexpected Expenses Derail the Debt Reduction Train", 2008).

While planning a budget it is besgt to list any irregular and unexpected expenses that may occur. Setting up a separate fund for Christmas and birthdays is a good idea also. This will help to keep from using credit to get gifts. ("Unexpected Expenses Derail the Debt Reduction Train", 2008). Setting prioritiesin your budget will also help to pay what has to be paid first and you can see what is left for the "what ifs".

As life's little unexpected occurences happen it is best to take as many precautions as possible. The best way to prevent a bad situation is to set up a fund fot the worst scenario. This fund is called "the emergency fund". It needs to have at least three to six months necessary living expenses in it. The fund should be put into an accessible account in case an emergency does arrive. (How to Prepare for Life's What Ifs", n.d.). If, after a budget has been set up, it looks like there is not enough to put into this fund, then revisiting avenues to cut back is wise. ("Unexpected Expenses Derail the Debt Reduction Train", 2008).

Being financially prepared will help in securing your credit score. In case of job loss, it could mean the difference in obtaining a new job, obtaining a new residence, or being accepted on a credit application. Having and managing a personal budget is one of the most important things to be done in life's little "what ifs".

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