3 'Surprise' Expenses You Need to Be Prepared For

A recent SecureSave survey found that 67% of Americans don't have the cash to cover an unplanned $400 expense. And that underscores the importance of having an emergency fund.

If you don't set money aside in your savings account for unexpected expenses, you might instantly land in debt the next time such a bill lands in your lap. But it's also important to recognize the difference between expenses that are truly a surprise, and those you have ample opportunity to prepare for. Here are three that fall into the latter category.

1. Property taxes you pay quarterly

Some people pay property taxes once a quarter, and they don't do so through their home loan servicer. Rather, they pay that money directly to their township or municipality.

Because property taxes aren't a monthly expense, they're an easy enough bill to forget about. But you should always have property taxes on your radar because they're a given cost associated with owning a home. Along these lines, you should set aside money every month for property taxes so that when your quarterly bills come due, they don't throw you for a financial loop.

2. Annual auto insurance premiums

If you own a car, you need to insure it. Auto insurance may be the sort of thing you only pay for once every six or 12 months. But even so, it should be on your radar every month, and car insurance should be a line item in your budget. That way, you can set money aside for those premiums rather than risk landing in a situation where you're struggling to pay them.

3. Attending a wedding

The cost of being a wedding guest can be significant, especially if there's travel involved. Similarly, if you're in the wedding, you can expect to shell out a fair amount of money on things like attire and chipping in for a shower or bachelor party.

But even if you're not traveling for a wedding or serving as a member of a wedding party, you might still end up having to write a large check as an invited guest, or shelling out a large sum of money for a gift. Since it's common to get a save the date card for a wedding months in advance, you should generally have plenty of time to save for your costs ahead of time. And even if the bride and groom don't send a formal save the date notice, if you're close enough to be privy to an invite, you're probably close enough to get a heads-up about the date of the big event.

Be prepared

It's a good idea to build an emergency fund so you're equipped to handle surprise expenses as they arise. But property taxes, auto insurance premiums, and weddings do not fall into that category.

So while these are things you should definitely save for, they're actually not things you should tap your emergency fund for. Rather, you should budget carefully and keep money for these expenses in a separate account so you're not forced into debt over costs you have every opportunity to anticipate.