Unexpected expenses
Phase-based guidance: triage immediate needs, stabilize finances, and build buffers to
avoid future shocks.
PHASE 1: Immediate Triage
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Prioritize essentials:
housing, utilities, food, and urgent medical costs first.
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Pause nonessentials:
suspend discretionary spending until the shock is managed.
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Short-term help:
use community resources, charities, or family support if necessary.
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Emergency fund:
if available, use it wisely; otherwise, build a plan to replenish.
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Short-term income:
consider temporary work, side gigs, or selling nonessential items.
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Negotiate bills:
contact providers to set payment plans or deferments.
PHASE 3: Recover & Build Resilience
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Rebuild buffer:
aim to save a small emergency fund (start with $500–1,000, then grow).
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Adjust budget:
include a line for savings and a contingency category.
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Insurance review:
check whether better coverage (deductibles, policies) would reduce future exposure.