Preparing for unexpected expenses you may face


When starting out on your financial journey, there are a number of things on the horizon to prepare for financially. Buying your first home, getting married, starting a family are all things to consider. But some expenses will arise which you do not expect, and often when you least expect it.

What are unexpected expenses?

An unexpected expense is something which will cost you money, where you cannot predict when it will arise or how much it will cost. These can be things like medical emergencies, a broken boiler, damage to your car or unexpected travel. Anything which you cannot accurately predict.

It is important to prepare for unexpected expenses to maintain your financial resilience. Thankfully, there are a few simple things you can do:

Emergency Fund

The simplest way of preparing for unexpected expenses is to establish an emergency fund. This is a savings account which is kept separate to any other savings you have and is for the sole purpose of unexpected expenses.

To set one up, open a new savings account and start depositing money into it regularly. You can set up a standing order to deposit a chosen amount every month and your emergency fund will build in the background for when you need it. Just be sure to not fall into the temptation of using it to pay for a last-minute holiday or car purchase. You never know when you might need it.


Having insurance is a great way of covering yourself when disaster strikes. By paying small amounts to an insurance company, you can be covered for larger amounts should you need it. Insurance is provided for a number of things, and life insurance is certainly one to consider. Should the worst happen to you or a family member, your beneficiaries will receive a pay-out from your insurance to cover the associated costs and provide them with money to cover what you normally provide.

Car insurance can help cover costs of an accident or breakdown, home insurance can help with broken boilers or structural damage, the list goes on. Consider which types of insurance you may need and if they may benefit you in times of unexpected financial trouble.


Many people who do not have an emergency fund or other savings, or insurance, will turn to taking out a credit card. It may seem like a good idea to quickly obtain the money you need. But when it comes to repayments, interest rates can be high and depending on your financial situation the banks may not give you one.

In this situation, many people will turn to payday lenders for quick cash and end up spending thousands as interest. Alternatively, you could look for a loan with a more ethical provider such as a credit union.

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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