I’ve already mentioned our upcoming bathroom remodel, and how it’s not something we’ve been planning but something that needs to be done because of water damage to the floor. The contractor will start work in a couple of weeks, and in the meantime, we’ve ordered and paid for the wall and floor tile. That was a substantial expense, and we still have more to buy – and we still have to pay the contractor too.
Apparently the 10-year mark is when things start breaking down around the house, because in addition to the water damage in the bathroom, we discovered that our water heater was leaking and needed to be replaced. That’s been done, but it was a rather hefty and unexpected expense.
With these two major expenses happening back to back, I’ve been thinking about our budget and whether we should make any changes.
I’m not sure what we would do, though. We could create a home maintenance account, which would work much like our infrequent bills account – every month, we’d deposit a predetermined amount into the account, and we’d make withdrawals from the account when expenses need to be paid. But I wouldn’t know where to begin deciding how much to put into the account every month, and it would be just one more account I’d have to keep track of.
And our current system works pretty well. The money to pay for these expenses will come out of our emergency fund, which is well funded since that was one of our steps for me to quit my job as an attorney. Really, the only issue is that psychologically, it’s hard for me to part with money that’s in our “savings” because it’s not intended to be spent!
How do you budget for unplanned expenses?