You're faced with unexpected expenses. How do you ensure they don't derail your budget goals?

When I prepare the budget, I always consider an extra item called miscellaneous expenses for any unexpected situation, because it’s significant to pay attention to the same, I have strategies so I can manage the budget with a small impact or maybe without impact depending on the unexpected expenses: Firstly, I must prioritize the expenses it is essential or can delay them, then I will check the effects overall of the strategic financial plan and then will rebuild and re-organize the budget based on the new priorities. I will avoid any unnecessary expenses or postpone as much as possible, another way is to consider a temporary adjustment. The last option is to consider extra funds from investors or banks.

For minor unplanned expenses, I always make provision for "Buffer" when creating a budget. An emergency fund is set up to cover significant expenses.

Many people make the mistake of using their savings for emergency needs. Emergency funds are created to help against unforeseen circumstances like job loss, medical emergency. Ideally it should be 3 to 6 months savings of your monthly expenses but you can start little and grow gradually. Emergency funds should be saved in easily accessible apps not one that will take a long process before withdrawal.

We should keep in mind that unexpected expenses are a part of the budget so, am following a strategy to implement without compromising the company's long-term objectives. To adjust the budget let us take a few steps: - Identify urgent expenses. - Evaluate the impact of these expenses. - Should consider the purpose. - Use any emergency fund but not from retained earnings. - Adjusting the budget based on timing and importance of them. - Cut any unnecessary expenses even temporarily so it gives time to generate extra revenue. - Discover an alternative solution to minimize the expenses or to maximize the income.

It is very important to reprioritze pending when faced with unplanned expenses. I created an unplanned expense matrix for that. 1. Pricey & Urgent 2. Pricey & not urgent 3. Not pricey & Urgent 4. Not pricey & non-urgent. The next step is to prioritize the expenses that are urgent and settle them first above anything else.

For urgent & pricey expenses, seeking out alternatives may come in handy. This could involve making a credit purchase or taking out a short-term loan to finance it.