Comments on: How Do You Handle Unexpected Expenses? http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/ finance. money. action. Fri, 20 Nov 2009 12:02:44 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Back To Basics: 79+ Brilliant Budgeting Resources You’ll Love | My Super-Charged Life http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-5946 Back To Basics: 79+ Brilliant Budgeting Resources You’ll Love | My Super-Charged Life Sun, 02 Nov 2008 21:19:16 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-5946 [...] 36. How Do You Handle Unexpected Expenses? [...]

[...] 36. How Do You Handle Unexpected Expenses? [...]

]]> By: Things I Learned Living on a Budget - Part 3 | My Super-Charged Life http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1269 Things I Learned Living on a Budget - Part 3 | My Super-Charged Life Fri, 07 Mar 2008 13:49:38 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1269 [...] A budget is a plan and not something written in stone. I have learned that a budget has to be flexible.  Life happens.  A budget needs to adapt to life.  Another way I like to describe a budget is as a spending plan.  Plans change when circumstances change.  Our budget has evolved over time.  Sometimes it is the same for several months, but then other times we adjust our budget every month or even in the middle of the month.  We try to anticipate before the month begins when there are going to be additional expenses in a given area.  For instance, May is a month where we have several family birthdays and Mother’s Day.  So, we adjust our budget in May to be sure we have funds available to buy the appropriate gifts.  When we do this we always have to move money from one area to another to cover the expenses.  We never spend more than our income in a given month.  Learning to be flexible with the budget and to anticipate when changes are necessary took time.  We got better with experience.  For the last year or so, we have been very good at it.  However, it can be a struggle at times.  Madison at MyDollarPlan wrote an article recently discussing her challenges with unexpected expenses.  [...]

[...] A budget is a plan and not something written in stone. I have learned that a budget has to be flexible.  Life happens.  A budget needs to adapt to life.  Another way I like to describe a budget is as a spending plan.  Plans change when circumstances change.  Our budget has evolved over time.  Sometimes it is the same for several months, but then other times we adjust our budget every month or even in the middle of the month.  We try to anticipate before the month begins when there are going to be additional expenses in a given area.  For instance, May is a month where we have several family birthdays and Mother’s Day.  So, we adjust our budget in May to be sure we have funds available to buy the appropriate gifts.  When we do this we always have to move money from one area to another to cover the expenses.  We never spend more than our income in a given month.  Learning to be flexible with the budget and to anticipate when changes are necessary took time.  We got better with experience.  For the last year or so, we have been very good at it.  However, it can be a struggle at times.  Madison at MyDollarPlan wrote an article recently discussing her challenges with unexpected expenses.  [...]

]]> By: Things I Learned Living on a Budget - Part 1 | My Super-Charged Life http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1210 Things I Learned Living on a Budget - Part 1 | My Super-Charged Life Wed, 05 Mar 2008 13:17:43 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1210 [...] Review - The Total Money Makeover 12 Steps to Setting a Financial Goal How Do You Handle Unexpected Expenses Why You Should Spend Less Than You Earn Retirement Nestegg - Calculator [...]

[...] Review – The Total Money Makeover 12 Steps to Setting a Financial Goal How Do You Handle Unexpected Expenses Why You Should Spend Less Than You Earn Retirement Nestegg – Calculator [...]

]]> By: Carnival of Personal Finance #141 - The College Years Edition — Broke Grad Student http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1051 Carnival of Personal Finance #141 - The College Years Edition — Broke Grad Student Mon, 25 Feb 2008 12:05:27 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-1051 [...] Madison from My Dollar Plan got hit with unexpected expenses as she was finalizing her family’s budget. Find out how she plans to deal with these expenses in How Do You Handle Unexpected Expenses? [...]

[...] Madison from My Dollar Plan got hit with unexpected expenses as she was finalizing her family’s budget. Find out how she plans to deal with these expenses in How Do You Handle Unexpected Expenses? [...]

]]> By: Carol http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-987 Carol Tue, 19 Feb 2008 12:28:15 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-987 A motorcycle? That is an individual expense that should not be attributed to both parties in a couple and certainly not in a household that has a kid or two. I would see that as on par with an addiction to $400 high heels, with the added problem of the risk of accidents. Guess I feel that there should be an agreed-on core of shared expenses related to necessity and then if parties in a family or household want to have the niceties or motorcycles in life, they figure out how to get those on their own, whether these people are married or roommates or whatever. A motorcycle? That is an individual expense that should not be attributed to both parties in a couple and certainly not in a household that has a kid or two. I would see that as on par with an addiction to $400 high heels, with the added problem of the risk of accidents. Guess I feel that there should be an agreed-on core of shared expenses related to necessity and then if parties in a family or household want to have the niceties or motorcycles in life, they figure out how to get those on their own, whether these people are married or roommates or whatever.

]]> By: Madison http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-984 Madison Tue, 19 Feb 2008 02:58:48 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-984 The motorcycle... <br>@ Minimum Wage and Savvy: Thanks for the tips, we'll check with Geico and Progressive. <br>@ Marsha: You're right! It is fortunate that it isn't due to accidents. Luckily I'm very familiar with the insurance industry, so I won't have to worry about and confusion on the terminology, but your idea to use a broker is a good one. <br>@ Mike: I would love to get rid of the bike... but of course since it's my husbands favorite hobby he probably wouldn't be too happy with me! <br>Preschool... <br>@ Mia, Mercedes, Ron and NCN: We actually chose the plan that is $580 per month for 3 mornings a week. The option for 5 full days is the $1400 plan. However on a dollar-per-hour cost it is pretty comparable to the other schools around and any day-care alternatives. The cost is mainly due to a higher cost of living in this area. Part of it is the preschool that we selected has a terrific program with a focus on the environment, similar to a Montessori school. However, we did price other preschools and didn't find much savings. <br>@ Digerati Life & David: Even though the prices are a little ridiculous, I'm glad to hear that I'm not the only one that faces these kind of prices for preschool.... it is crazy! Luckily we have an excellent public school system here in Wisconsin and we will send our kids there when they are old enough... for free! The motorcycle…

@ Minimum Wage and Savvy: Thanks for the tips, we’ll check with Geico and Progressive.

@ Marsha: You’re right! It is fortunate that it isn’t due to accidents. Luckily I’m very familiar with the insurance industry, so I won’t have to worry about and confusion on the terminology, but your idea to use a broker is a good one.

@ Mike: I would love to get rid of the bike… but of course since it’s my husbands favorite hobby he probably wouldn’t be too happy with me!

Preschool…

@ Mia, Mercedes, Ron and NCN: We actually chose the plan that is $580 per month for 3 mornings a week. The option for 5 full days is the $1400 plan. However on a dollar-per-hour cost it is pretty comparable to the other schools around and any day-care alternatives. The cost is mainly due to a higher cost of living in this area. Part of it is the preschool that we selected has a terrific program with a focus on the environment, similar to a Montessori school. However, we did price other preschools and didn’t find much savings.

@ Digerati Life & David: Even though the prices are a little ridiculous, I’m glad to hear that I’m not the only one that faces these kind of prices for preschool…. it is crazy! Luckily we have an excellent public school system here in Wisconsin and we will send our kids there when they are old enough… for free!

]]> By: David@My Two Dollars http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-983 David@My Two Dollars Tue, 19 Feb 2008 00:57:11 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-983 Oh, and Madison - what state do you live in? We have a great insurance co that saves us a ton that might be in your state as well... Oh, and Madison – what state do you live in? We have a great insurance co that saves us a ton that might be in your state as well…

]]> By: David@My Two Dollars http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-982 David@My Two Dollars Tue, 19 Feb 2008 00:55:54 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-982 That's how much preschool costs here in Los Angeles - where my wife teaches, it is $1,300 a month. And that is on the low end. Thanks for the mention Madison... That’s how much preschool costs here in Los Angeles – where my wife teaches, it is $1,300 a month. And that is on the low end.

Thanks for the mention Madison…

]]> By: NCN http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-979 NCN Mon, 18 Feb 2008 21:55:18 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-979 Wow! That is a LOT of money for preschool. Why is it so much? As for unexpected expenses - I have an an actual category in my budget labeled 'Unexpected Expenses'... money is deposited into interest bearing checking, and I can access it when something like you mentioned comes up... Wow... again, that's a LOT to pay for a pre-k kid to go to school! NCN Wow! That is a LOT of money for preschool. Why is it so much?
As for unexpected expenses – I have an an actual category in my budget labeled ‘Unexpected Expenses’… money is deposited into interest bearing checking, and I can access it when something like you mentioned comes up…

Wow… again, that’s a LOT to pay for a pre-k kid to go to school!
NCN

]]> By: Ron@TheWisdomJournal http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-978 Ron@TheWisdomJournal Mon, 18 Feb 2008 19:42:52 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-978 That DOES sound like too much for pre-school. I send my children to a private school and it's about $1,000 per month for all three (8th grade, 7th grade, and 2nd grade) I know this is pretty inexpensive, but $1,000 per month for one in pre-school doesn't sound right. That DOES sound like too much for pre-school. I send my children to a private school and it’s about $1,000 per month for all three (8th grade, 7th grade, and 2nd grade)

I know this is pretty inexpensive, but $1,000 per month for one in pre-school doesn’t sound right.

]]> By: Mercedes http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-977 Mercedes Mon, 18 Feb 2008 19:25:28 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-977 Wow! that's a lot of money for preschool. My husband and I have decided not to send our soon to be 3yo to preschool next year because it costs $1600 for the year! I couldn't imagine paying more. Ok, granted another reason we refuse to send him is because it's a christian preschool and we are jewish, but still. We handle mayor unexpected expenses by having an emergency fund. But in your case it sound the expenses wre somehow planned or even expected (except motorcycle)you just didn't know the amount. When we have expenses like these, were they haven't hit us yet so there's time to prepare for them we start adjusting our budget to reflect them now. Thatw ay when they start coming in there would be some savings to use and the impact on our budget would be less. Wow! that’s a lot of money for preschool. My husband and I have decided not to send our soon to be 3yo to preschool next year because it costs $1600 for the year! I couldn’t imagine paying more. Ok, granted another reason we refuse to send him is because it’s a christian preschool and we are jewish, but still.
We handle mayor unexpected expenses by having an emergency fund. But in your case it sound the expenses wre somehow planned or even expected (except motorcycle)you just didn’t know the amount. When we have expenses like these, were they haven’t hit us yet so there’s time to prepare for them we start adjusting our budget to reflect them now. Thatw ay when they start coming in there would be some savings to use and the impact on our budget would be less.

]]> By: Four Pillars http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-976 Four Pillars Mon, 18 Feb 2008 18:44:46 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-976 Thanks a lot for the link. I'm not sure about self-insuring for motorcycle liability - we were talking more about having larger deductibles. Another option is to get rid of the bike - I considered getting one when I was single but now that I'm a father I would never consider it - mainly because I know I would drive like a maniac with it. Mike Thanks a lot for the link.

I’m not sure about self-insuring for motorcycle liability – we were talking more about having larger deductibles.

Another option is to get rid of the bike – I considered getting one when I was single but now that I’m a father I would never consider it – mainly because I know I would drive like a maniac with it.

Mike

]]> By: The Digerati Life http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-975 The Digerati Life Mon, 18 Feb 2008 18:01:27 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-975 I've expressed my chagrin over preschool and private school fees where I live (the SF Bay Area) in some recent posts I've written. I understand the nanny + preschool issue. Lots of my friends have this situation. I also have a sitter come on occasion though I have family living with me to help me out with my kids as it is (thank goodness!). Preschool in the general vicinity of San Francisco is $1000 a month. If it's 3 times a week, half day, you pay $700 - $800 a month. It's crazy. Private school ranges from $7K to $30K. When the governor is threatening to cut funding to our schools, we parents all feel quite concerned about what to do about primary school. Private school -- should we or shouldn't we? Can we afford it? Tough choices here... I’ve expressed my chagrin over preschool and private school fees where I live (the SF Bay Area) in some recent posts I’ve written.

I understand the nanny + preschool issue. Lots of my friends have this situation. I also have a sitter come on occasion though I have family living with me to help me out with my kids as it is (thank goodness!).

Preschool in the general vicinity of San Francisco is $1000 a month. If it’s 3 times a week, half day, you pay $700 – $800 a month. It’s crazy. Private school ranges from $7K to $30K. When the governor is threatening to cut funding to our schools, we parents all feel quite concerned about what to do about primary school. Private school — should we or shouldn’t we? Can we afford it? Tough choices here…

]]> By: Mia http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-974 Mia Mon, 18 Feb 2008 17:09:38 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-974 Is that some sort of specialized preschool? We pay $95 a month for two mornings a week (3yo) and $130 for 3 mornings a week (4yo), and it's an excellent school. Are you really going to pay $1,000 per month or more? Is that some sort of specialized preschool? We pay $95 a month for two mornings a week (3yo) and $130 for 3 mornings a week (4yo), and it’s an excellent school. Are you really going to pay $1,000 per month or more?

]]> By: Marsha http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-972 Marsha Mon, 18 Feb 2008 15:46:07 +0000 http://www.mydollarplan.com/how-do-you-handle-unexpected-expenses/#comment-972 "the motorcycle insurance for my husband’s motorcycle skyrocketed. Unfortunately, it wasn’t due to any accidents . . . " I'd change that to "fortunately". While I'd be grumpy about the charge it's far better than the cost of an accident. I use an insurance broker to help me find the best deal on insurance. The broker represents a number of insurance companies. It's easy for them to identify the best deal for me. Also, because they speak the insurance "lingo" they can work efficiently with the insurance company. Once I called the insurance company directly for something I thought was easy. I wanted insurance on the contents of my storage space. The insurance company said they couldn't do it. Then I turned to the broker. They were able to get the insurance policy for me by referring to it as a variant of home owner's insurance. Sometimes it's all in the terminology. “the motorcycle insurance for my husband’s motorcycle skyrocketed. Unfortunately, it wasn’t due to any accidents . . . ”

I’d change that to “fortunately”.

While I’d be grumpy about the charge it’s far better than the cost of an accident.

I use an insurance broker to help me find the best deal on insurance. The broker represents a number of insurance companies. It’s easy for them to identify the best deal for me.

Also, because they speak the insurance “lingo” they can work efficiently with the insurance company. Once I called the insurance company directly for something I thought was easy. I wanted insurance on the contents of my storage space. The insurance company said they couldn’t do it. Then I turned to the broker. They were able to get the insurance policy for me by referring to it as a variant of home owner’s insurance. Sometimes it’s all in the terminology.

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