A recent study has shown that basic, everyday expenses take up a staggering 78% of your income. This basically means that just a tad over 20% is left over for those unexpected expenses that may come your way. So that means that it’s important to identify potential unexpected expenses that may or may not show up in your lives this year. Here are a few:

  • Your Child. Raising a child can cost upwards of $13,000 annually. Also, unplanned pregnancies can cause a significant increase in expenses.
  • Pets. These furry children need many of the same things human children do, such as food, shelter, toys, as well as a whole host of pet-specific needs.
  • Personal Healthcare. For many Americans, health insurance doesn’t even kick in until they have paid into the thousands of dollars out of pocket.
  • Auto Expenses. Although maintenance and basic repairs are somewhat easy to expect, a major expense such as a transmission is something most people hope to avoid.
  • Fees. Anything from HOA fees, to needing a new roof, to replacing the air conditioning fall under this category. Basic fees and expenses to manage our dwellings are always hanging right around the corner, it seems.
  • Unexpected Travel. Funerals, family weddings, job relocations – all of these events can require travel expenses that weren’t on our radar.

It’s not always possible to plan for each of these scenarios individually, but paying down high interest debt, analyzing and optimizing your budget, and stashing away your savings goes a long way toward helping to deal with any of life’s surprises.