Chris O'Shea
According to a recent report, 56 percent of American adults have dealt with a “surprise expense” within the last year. The average cost of that expense was a whopping $5,500. What does that mean? It means a healthy emergency fund is necessary.
Here’s a look at some common unexpected expenses and a rough estimate of how much you’ll need to weather each.
Medical Costs
If you have a high-deductible medical plan (HDHP), a surprise hospital stay could cost you plenty. That high deductible keeps your premiums low, but that also means you have to pay out of pocket before insurance kicks in.
Potential Costs. In 2025, the minimum deductible is $1,650 for an individual and $3,300 for a family.
- Tip: One way to prepare if you have a HDHP is to consider saving for medical costs in a health savings account (HSA).
Home Repairs
A surprise home repair can cost thousands. For example, if your home’s foundation needs work, that’s about $5,000. A more common home repair issue is a new roof. Those can run you anywhere from $15,000 to $27,000.
- Tip: A good rule of thumb for housing repairs is to try and save between two and four percent of your home’s value.
Vet Visits
Pets are great, but they can also be expensive. The average cost of a routine vet visit is between $40 and $186. Those are just for a routine visit. If your dog needs dental work? You’re looking at anywhere between $300 and $2,000.
- Tip: One way to keep those costs down is to look into pet insurance.
Do One Thing: Be sure to fund an emergency savings account for unexpected expenses.
Jean Chatzky
