You’ve Got to Be Kidding Me!!!

You’ve Got to Be Kidding Me!!! Dealing with Unexpected Expenses

Alright, you all know what it feels like when nothing seems to go your way. Your car dies, your computer crashes, and your iPod breaks during one of the busiest or most important weeks of the year. How are you going to fix all of these things in a short period of time?

A crisis like this reminds me of my friend Steven, a student paying his way through college. One week he was having trouble with his car, and as he was trying to get it to start, he placed his backpack on top of the trunk. The car started, and as he was driving he heard a loud thud. He had forgotten to put his backpack in the car! Unfortunately his computer, iPod, and homework were thrown all over the road. He had to pick up his iPod in three different pieces and could only see a quarter of the screen on his computer. To top it all off, Steven’s car died before he even made it home. Steven needs his car to get to school, his computer to do his homework, and his iPod to keep him focused. Having to replace expensive items quickly can be stressful for anyone, especially a struggling college student.

So where is Steven going to get the money to fix his dilemmas? Well, here’s where a spending plan is useful. A spending plan helps you to know how much money you are making and spending. In a spending plan, you decide how to spend your money for certain things you have to pay for such as rent, food, and most importantly other categories such as savings. Fortunately Steven had been putting away a small amount of money each month into a savings account for emergencies such as these. This is an awesome idea on Steven’s behalf, because saving just 10-20% of each of his paychecks can help to save money for different emergencies that might come up unexpectedly.  If he didn’t have this saving habit and spending plan already in place, Steven probably would’ve had to borrow money, which could mean more money spent in fees and interest charges.

What I’m trying to say is that accidents happen to everyone at some point or another and most of the time when we least expect them. You can be prepared for them if you have a spending plan that allows you to save a bit of your money every month. 

What are some of the things that you would include on your spending plan in order to put away money for emergencies like Steven’s?