Are Irregular Expenses Busting Your Budget?

Dishwasher goes kaput, tires are going bald, or accidentally spill coffee on your laptop? These unfortunate expenses are not regular, but they do happen, and sometimes they are “expensive,” which can break your budget.

Are irregular expenses busting your budget? It is easy to carefully budget for your regular expenses like groceries, gas, and electricity bills. However, when these one-off expenses hit your monthly budget, they can throw things into a loop and immediately put you in the red.

So, how do you accommodate these irregular expenses? One effective strategy is to look at your irregular expenses from the previous year and total them up. Then, divide that total by 12 months and add a 10% buffer. That irregular expense has now become a regular budget item.

Example: Irregular Expenses in 2023

• Tires = $1200
• Dishwasher = $800
• Laptop = $1500

Total = $3500 + 10% buffer = $3850

Divide into 12 months = ~$320 per month irregular expense new budget category

-HC