Even with a good budget, there are always a number of costs that you cannot plan. Every form of emergency, such as a house fire or a car breakdown, can lead to large, unexpected invoices. You can never know for sure when or how this type of disaster will strike – but you can be pretty sure it will happen one day.

For this reason you should try to make room in your household budget for savings. By setting aside a small amount – even just $ 10 or $ 20 – from every salary, you can build an emergency fund to tackle these unpleasant surprises. If you manage to save even a few hundred dollars, you can go to your savings in a crisis, instead of a lender.

As long as you put money aside to pay it, an unplanned expense is simply a nuisance, not a disaster. And the more money you reserve to deal with emergencies, the easier it is to get ahead in the future.