We cannot predict the future. Sometimes we spend more at certain month. Sometimes we should service the roof because the kid throw a stone to our roof. We must need hundreds dollar to fix the roof or the rain can flood our house. We do not suppose a kid throw our roof. However, we should change the roof or we our house will get flood.
There are so many unexpected expenses. We can predict the durable of the roof. Let say, we can use the roof for twenty years. If someone break it, we should change it immediatley. If we have the insurance we may get the money from it. Some house insurance protect the owners from the loss including the roof.
The insurance is a solution for unexpected cost. When you should go to hospital, the insurance may pay the medical bill. As consequenlty, you should pay the premium every month. The employee usually get insurance from the company because the government obligate the company to protect the employee.
Beside insurance, you can create emergency fund so you can pay the unexpected cost. Build emergency fund is not difficult. You need at least cash six times your monthly needs. You should not withdraw the emergency if you do need it.
The people can keep the emergency at the house. They can also save the emergency in stock or mutual fund shape. The gold bar or gold coin is also good for the emergency fund. We can sell it at jewelry store or pawn shop.
We can anticipate the unexpected cost by forecasting. For example, We can provide some cash or earmark some money for the service of the house after years. We can forecast when the house needs service.
See the last year unexpected cost and calculate it. We should provide the cash for the unexpected.