LPT: Set Aside a Dedicated Fund for Impromptu Expenses

When budgeting, it’s common to allocate a buffer amount for unexpected or emergency expenses. However, this approach might fall short if the buffer is too small or the expenses exceed expectations.

To better manage such situations, consider setting aside a separate fund specifically for impromptu expenses, covering a period of six months to a year. This fund acts as a financial cushion, allowing you to handle unexpected costs without impacting your regular monthly budget.

For example, if you decide to attend a concert or plan a spontaneous trip, this fund can cover the costs, keeping your budget intact and stress-free.