I keep getting eaten alive by unforeseen expenses--help?

Seeking Advice Forum
1

Background: I’m currently on long-term disability and trying to get back to work. It’s really important for me to project my spending and expenses accurately, but I’ve been slammed by unexpected costs that have wiped out my savings. For example, I had to pay $900 for my dad’s health insurance, $500 for a new phone, and $1400 for my dog’s dental work—all in a short time. I know I need an emergency fund, but I keep getting hit. Does anyone have advice on how to anticipate these expenses better? Any rules of thumb for budgeting, like what percentage goes to monthly versus one-time costs?

2

I’ve found it helpful to have a zero-based budget each month. Track all income, expenses, and savings. Here are my after-tax categories: Housing 35%, Utilities 10%, Transportation 5%, Savings 20%, Food 5%, Medical 2%, Entertainment 5%, Gifts 5%, and so on. Adjust based on your needs. Also, I use sinking funds for predictable expenses. This way, I can save a bit each month for those larger costs when they come up.

3

@Shay
Thanks for these detailed percentages! I like the idea of sinking funds to manage predictable costs.

4

Sometimes expenses just exceed income, and that’s not your fault. You need a larger emergency fund for those unpredictable costs. It’s okay to tell your brother you can’t afford to help right now—keeping yourself afloat comes first.

5

@Sage
I appreciate that perspective. It’s hard to prioritize my needs over helping family, but I see your point.

6

I always plan for an extra 10% to 15% of my annual income for unplanned expenses. Life throws curveballs, right? If you can, consider a second gig temporarily to cover the gaps.

7

Haha, I’m middle-aged and disabled, but I might go back to my full-time job with some accommodations. I’ll try to work on that 10%-15% rule for now!

8

Focus on resisting impulse purchases, especially under pressure. It sounds like you feel obligated to spend to keep others happy, but your financial health comes first.

9

Haru said:
Focus on resisting impulse purchases, especially under pressure. It sounds like you feel obligated to spend to keep others happy, but your financial health comes first.

You’re right! I often cave to pressure from family. I need to be more assertive about my financial situation.