How to Deal with Unplanned Expenses and the Stress that Comes with Them

With unplanned expenses come unwanted financial stress.

Just 2 days ago, we brought home our new car. And while this is typically something you would be excited about, I just can’t seem to find any of that excitement within me. Why? I gave up the money I was saving for a better cause as a down payment for this car – to keep the monthly payment affordable.

A few months ago, my husband’s car broke down (It was already 15 years old, and we usually drive our vehicles until they die or are no longer safe) and we had to sell that to avoid further stress. Since then he is driving my car in order to commute to his work. I didn’t need a car during this time since I work from home and the kids are also staying at home due to the pandemic. But now that my kids are going back to their schools for face to face learning, we needed to buy a second car for me before schools start.

Sometimes you’re hit with an expense that can’t wait.

While we all love our new car, we are paying more than what we initially wanted to spend on it, all because of Covid-19. We thought of buying a gently used, certified, reliable vehicle as we always did (Mainly to save money and because it always seemed to be a better choice), but ended up buying a brand new one instead!

We simply didn’t find any good deal on used cars this time, and buying a brand new car seemed to be a better idea when we compared everything between a used and new car! It was frustrating, but we just had to go for new. This is actually our first ever brand new car.

As you may or may not know, there are not that many cars in the market for sale, and the price of both used and new cars are record high due to high demand and limited supplies. There is also a major shortage of computer chips. And of course, surging inflation is to be blamed, too.

Record high, sky-rocketing prices for both used and brand new cars is more than an annoyance. It’s an obvious economic problem that weighs heavily on household budgets and creates more stress.

And we are no exception!

Related post: How to Navigate Surging Used-Car Prices

However, it was a priority for us at this time because my kids would be going back to school, and while we normally carpool (as it is a way to save valuable time, money, and energy), this year that isn’t an option.

Why am I telling you all this? Not to brag and say “Oh! Well, guess what, I just got a new car.” Never. Because of this very car, there are going to be a lot more budgetary restrictions now. A lot more “no’s” to kids and to myself as well!

It was a hard financial decision to make since we weren’t prepared for this extra unplanned expenses, and we like to live well below our means. Luckily, we were able to secure 0% APR for 66 months which brought some relief.

I am telling you this because we all need to prepare for such uncomfortable situations where we have to change our plans and reset our priorities for a while. We are passing through an unprecedented time, and things may change beyond comprehension – ANYTIME.

When you have a new priority that can’t wait, you have to take care of it quickly. 

The most expected part of life is that it won’t always go as planned. Even the most careful planner may be taken by surprise with an incident that they had not planned or prepared for.

While you certainly can’t plan for everything, it is good to have a contingency plan in place when things go awry. Keep in mind that once you experience any kind of unplanned expenses (not necessarily an emergency but more like my kind of situation where you aren’t left with good choices or options), you may need to reassess your current plan and make changes.

Keep breathing space in your budget, save as much as you can in your emergency and sinking funds, track all your expenses carefully, cut back on things you can live without (at least for a while until you feel financially confident and comfortable again), and do your best to maintain a good credit score (Here you should aim for excellence) which will save you a good chunk of money while purchasing big ticket items.

Here are some popular posts that may help you manage and improve your finances and deal with unplanned, sudden expenses:

• ​An Emergency Fund and Your Peace of Mind (A beginner’s guide to everything you need to know about emergency funds!)
• ​How to Save Your First $1000 & Boost Your Savings​
• ​52 Easy Ways to Save Money and Build Wealth​
• ​6 Kinds of Savings You Need to Boost Your Happiness​
• ​25 Good Financial Habits for Budgeting, Saving, and Building Wealth

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