When an unexpected bill hits you!

Last week, I shared about taking a look at your budget periodically and doing a budget reset. When I posted that post, I was all excited about catching up on my leftover summer bills and feeling really comfortable with October. Then I received a very high water bill on Tuesday and started stressing out about it wondering if the utility company had made a mistake, how I would pay it, etc.. At other times, we have had unexpected bills from doctors or maybe an unplanned outing or vacation. What do you do when something like that threatens to break your budget?

Medical bills

First off, for anyone who doesn’t know, when you have a baby and a hospital bill or a surgery of any sort, you are not required to pay your bill in full when you receive it or before going into the hospital. Have them bill you so that you can check whether the information and billing is correct and tell them that you can make payments. I remember going in the hospital to have my son and filling out paper work and the lady telling me I owed “blank” amount. I responded that I would be making payments and to send the bill (I did have to pay my Obgyn practice before going in though, in payments). Many people do not know this and experience a lot of stress because of that. You usually can tell them how much you can afford to pay a month. These payments should be interest free.

Unexpected utility bill or car repair

For a utility bill, I would most likely dip into my emergency/savings fund to pay the difference between what my bill usually is and what it was if it is a once in a very long blue moon experience. This is only in case of a radically large bill that I just couldn’t pay and stay in budget that month. I usually expected my electricity bill to be quite high in summer because of the AC and high for our gas in winter because of the heat system so I plan my budget accordingly. As far as a large car repair such as new tires or brakes, we usually use our Firestone or Goodyear credit card and take advantage of the 6 months no interest and pay it off before the final payment is due.

Impulse purchases

If you cannot pay off your credit card(s) fully at the end of each month, try leaving them at home, taking the one click information off of Amazon and other places you shop so that you will not make a impulsive purchase. I think that my monthly credit card bill could be so much lower if I did not have that information on Amazon! The effort it would require me to go find the card and enter the info would allow me to think twice about my purchase. There are months were I do not carry my credit card in my purse and the bill is definitely lower those months! My goal for the next 6 months is to drastically reduce the number of purchases I make using my credit card. If you are already in credit card debt, consolidating your bills will lower your payments and interest payments.

Vacations or outings

What if your friend invites you to go out to dinner or for drinks and you know that is not much wiggle room in your budget? Or you decide that your family needs a break and want to take a weekend out of town?

First off I would calculate how much I have in my budget for the occasion. If it is a small vacation, do I have any money in my vacation savings account? If not, I would plan a day outing somewhere and find a way to do it for free or almost free: maybe a state park to visit (it is only $5/car to get in) and have a picnic, find a free museum to see, sightsee or find murals around your town. Do not spend money you do not have. We all do this at times but while it might be fun at the time, it will make your life stressful in the long run and is not worth it! As I make mistakes, I am learning and getting better at not repeating the same mistakes. But like everyone, I am not perfect which is why we have some lean months to make up for those mistakes!

If you have a little money to go out with your friend but not enough for a full meal, you could suggest going out for a drink or just desserts, find a place and a coupon for b1g1 meal and be creative to stay within budget. I often have my kids order just water if their drinks is not included in their meal because drinks for the children and me can potentially add 10 dollars to our bill. It may not sound like much but each 10 dollars adds up!

I hope this post help you think about different aspects of your budget. This information is not groundbreaking or new but  it may remind us of habits we should break and help us create new habits. Maybe it is to create an emergency fund and add a little money in there each month for unexpected bills or remember to not carry or credit card around to minimize our impulse purchases.

Next week, I will share how we celebrate Christmas without breaking the bank!

A bientôt!

Please take a minute to subscribe to the blog to receive an email letting you know when a new post goes live. I usually post Monday, Wednesday and Friday but sometimes have a bonus post during the week. You can also follow me on instagram @chezmireillefashiontravelmom.com

I link up with these fabulous blog link ups!