Unexpected Events

Windfalls - Savings - Expenses
The only thing predictable about life is that "life is unpredictable." One of my favorite quotes is "if you don’t think God has a sense of humor, then tell God your plans." So it is not if you will have unexpected events it is a matter of when. This is not to say all unexpeted events are bad. Many will be on the positive side. Either way you need an action plan.

Unexpected Expenses or Downside Events
Baring catastrophic health events, most unexpected downside events can be solved or relieved with money. Unexpected automotive, hosing repair, appliance failure or even job loss are solved by time and having access to enough money.

The key is where the money comes from to solve the problem. If you are running on a good budget and have estableshed good credit and have several credit cards that are 90% open balances a "little hiccup" in life will be a slight bump. The question them becomes whether to use the credit card to pay for the expenses or take the money from savings. If the amount is large enough that it doesn't fit into monthly cash flow then it must be financed from either savings or credit cards. An exception might be a major expenses related to home upkeep. An air conditioner failure or damage not covered by insurance may require a short term loan. The best way to finance any expenses is from your own savings. Based on the amount that may not be possible.

So if the based on the amount;

• Savings Account
• Credit Card - if paid over two or three months
• Small low interest loan