Car payments. Mortgage. Groceries. If you have a good budget, all your expenses are accounted for. But where are the funds for "bridesmaid at best friend's wedding" or "run car into curb?" It's frustrating when a surprise expense throws your budget off. But some financial setbacks are predictable. Check out our top 10.
1. Car repairs
Minor or major accidents and gradual wear and tear on your vehicle can leave you staring, open-mouthed, at an unplanned bill in the hundreds of dollars. Prevent unnecessary expenses by checking your owner's manual and scheduling your car's recommended maintenance -- on time.
2. Price hikes
Gas and insurance prices keep rising. You can't control the price of gas but you can shop around if your insurer is raising your premiums. Curb costs by carpooling to work and take up energy-efficient habits like not idling when you stop for that morning coffee.
3. Job loss
Losing your job can be traumatic, but if you're in a relatively stable financial situation, you should be OK financially. While unemployed, keep your expenses to a bare minimum and, if you're even remotely concerned about your finances, look for a job ASAP.
4. Weddings and birthdays
Maybe this is the summer of weddings, or your little boy suddenly has birthday parties scheduled all fall. Thin out your responsibilities by turning down less important invitations, get the most value from your dollar by being part of group presents, and be creative in your gift giving. If all else fails, remind yourself that you, too, have a birthday, so (hopefully) it'll all come back -- if nothing else, in karma.
5. "Happy" holidays
OK, so this isn't unexpected. But many people declare bankruptcy in the beginning of the year, after their Christmas shopping has caught up with them, explains Laurie Campbell, spokesperson for Credit Counselling Canada, a non-profit group that educates the public and helps people avoid bankruptcy. "It's just not a planned expense," she says. Figure out where that money is going to come from ahead of time.
Page 1 of 2 -- Tired of sneaky credit card fees ruining your monthly budget? Learn how to take charge of your bank account, plus other great money management tips, on page 2
