Thursday, December 17, 2009

Unexpected Expenses, How to Cope

December is always a time of reflection for most people. Embarking on a new year, attempting to do things different from the year before. As I reflect on 2009, I see a lot of accomplishment and I am so proud of many things that have occurred in my life. However 2009 wasn't such a great year for my finances because honestly for the most part I neglected them.

This year I am seriously seeking debt freedom and I don't want to have another year fly by without having done everything I could have possibly done to become debt free. So as I look over last years expenses I noticed I was doing a lot of unexpected things. Car repairs, home repairs, trips and shopping. Even though I will be going into 2010 in the black I am way off target for paying off stuff and I know it was because of the unexpected. But alas I have a solution!! Put it in the budget!!

I realize I am a woman after a clean heart, meaning I like everything simple. I thought I was getting simple by creating an unrealistic budget. How so you ask?? I did everything In my power to keep everything 0 dollars. I figure the less zero's I saw, the less I was spending right? wrong!! Because I didn't plan, I ended up spending more that I should have on certain things. The way I plan to keep from doing that this year is being realistic. I know my car is going to need some type of repairs, I am gonna wanna take a trip to somewhere, and by golly I am definitely going to go shopping for new clothes. If I allocate something, even if its only a little to each of these accounts, it won't be so devastating when I actually do need to spend the money.

Hopefully I will have a budget sheet on here soon for everyone to use and go through the process together. So people, what are some of the things you plan to do differently with your money this year? Inquiring minds would like to know.....


ms80s said...

And see that's what I think helps me stay ahead because I do allocate money for expenses before they happen.....

For example, in January I'll receive my bonus for 09 and it will be a decent amount of money. So I'll put that up and I'll chip off of that until it's gone. I'll allocate so much for my mini trips, and other things that I know that is going to occur.

Same thing with my income tax refund. I put that up as well and use it for extra stuff.

In order to keep a realisitic budget you have to prepare for the unexpected. Because it's definitely gonna happen.

It's nothing really different that I plan on doing. I want more income of course. I want to save more.

Divine & Debt Free said...

Yep you have been doing that for a good minute!!! kudos to you!

I did my budget again and I still didn't account for the unexpected !! how am i to write about planning for the unexpected and not follow my own rules lol. I did write it "unofficially" on paper somewhere lol. I need to get it together!