Unexpected Expenses and How to Deal With Them

Unexpected expenses are what the words suggest, costs that you don't expect but come your way. You can sit and plan your finances and expenses, but suddenly your water pipe in the kitchen bursts, and voila! Here is an unexpected expense.

6 Ways To Deal With Unexpected Expenses

Your budget goes out of the window as soon as you face an unexpected expense. There is no way to stop unexpected expenses but what you can do is prepare in advance for them. You can have an emergency or contingency fund to tackle these unexpected expenses to put things in perspective. 

What Is An Unexpected Expense? 

Unexpected expenses aren't bills you don't have to pay every month but have to pay sometimes. For example: 

  • Water bills
  • Yearly eye examinations
  • Expenditure due to accidents/mishaps
  • Expected expenses are predictable, and you know when they'll be due. In most cases, you also have an approximate idea of how much the cost will be. You can plan for such expenses. 

An unexpected expense is something you cannot predict and comes out of nowhere—for example, a medical emergency. You can't factor these into your regular budget, but you can have a contingency fund. 

Also Read: Money-saving tips for summer-time expenses

Insurance Cover 

An insurance cover is essential for any person as it saves them from any unexpected expenses. The insurance provider takes care of the expenses in return for a much smaller yearly amount. 

Emergency Fund

Having an emergency fund ensures that you have something in the bank for a rainy day. An emergency fund is an amount of money that you have collected for cases of unexpected expenses. 

Types Of Unexpected Expenses

Here are a few types of unexpected emergencies and their solutions. 

1. Medical Emergencies

You cannot predict a medical emergency such as an accident. You never know when something bad happens on the road. If you meet with an accident, you will have a huge bill in front of you and agony, pain, and stress. 


  • Even if you are the healthiest person, you can get injured. The solution to this is insurance. It helps you financially when you incur an accident. It saves you from a lot of financial trouble. Another way is to go to walk-in clinics instead of hospitals because a hospital will charge you a lot more. 

2. Pet Emergencies

Pet's are the apples of our eyes, and we do anything to keep them happy and safe. It can be costly to take care of pet emergencies. It can be as costly as it would be for a human. 


  • Sadly, however well you try to protect your pet, they can have diseases such as diabetes, thyroid, or even cancer. It can cost thousands and lacs of rupees, and the best way to be prepared for this is to get pet insurance. Just like humans have insurance, so do pets. It will save you from a lot of financial trouble if you get insurance for your beloved pet. 

3. Major Auto Repairs

Though you can predict some expenses that your car will incur, you cannot factor in costs for accidents. You never know how much money you would need to shell out to fix your vehicle. 


  • The best way to be covered is to get car insurance. You can get a lot of coverage and save a lot of money if you get car insurance. You can also keep an emergency fund for such accidents if you don't want to get insurance. 

Also Read: 7 most expensive car crashes

4. Major Home Repairs

Your home can cost a lot when it comes to regular maintenance or even some unexpected ones. Whether it's an electrical fault or a pipe burst. 


  • Home insurance is the best way to get rid of such expenses. You would not have to shell out thousands and lacs of rupees as such insurances cover most of the crucial aspects that might cost a lot otherwise. 

Also Read: How to regain control of your expenses during a pandemic

5. Unplanned Travel

You can have unexpected travel plans, such as when you have to go to a funeral or a long-lost friend's marriage. 


  • Choose a cheap accommodation 
  • Choose the most affordable mode of transportation 
  • Eat within your means 

6. Gift Expenses 

There are occasions when you have to buy gifts for others. These might come out of the blue and cost a lot of money. Such as a wedding. 


  • You don't "have to" give gifts if you don't want to. However, if it is necessary to give gifts, you can ask others to chip in and buy a gift or gifts together. This way you and others can save a lot of money. 


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