Unpredictable expenses, by definition, are unpredictable. So many of us simply exclude them from our budgets. Even though it's predictable, you might not be incorporating it into your budget because it's infrequent. You realize it's a large expense, but because it's going to occur so infrequently, you don't have a good way of grouping that with other expenses that similarly are infrequent.
Have you had a recent surprise expense? You're not alone. More than half of American households report facing an unplanned financial shock in the last year. This week, in the second part of our new "Money 2.0" series, psychologist Abigail Sussman points out our blindspots around money, and how we can be smarter about spending and saving.
If you like this show, be sure to listen to last week's episode on how our unconscious attitudes towards money influence how we manage our finances.
Also, check out our new podcast, My Unsung Hero! And if you'd like to support our work, you can do so at support.hiddenbrain.org.