ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They usually don’t affect your budget.
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They should be planned for.
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They usually don’t affect your ability to pay bills.
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They should not be included in your budget.
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Detailed explanation-1: -A truly unexpected expense is something that you can’t predict, such as a natural disaster or a medical emergency. These are the things that could happen to you at any time, but you can never be sure if they will – or how much they’ll cost you if they do.
Detailed explanation-2: -Unexpected expenses are those expenses you did not see coming. An example would be going for your inspection of your car and not passing because there is something that must be repaired. This is something that can be included in your budget as part of your savings plan.
Detailed explanation-3: -What is NOT true about unexpected expenses? They do not occur if you have a budget.
Detailed explanation-4: -Tap into your emergency fund. If you have enough cash on hand in your emergency fund, you can use some or all of it. Use a credit card. Borrow cash from family or friends. Ask for an advance at work. Get a personal loan. Pick up a short-term side gig. 28-Jun-2022