$avvy $undays #4: Expecting Unexpected Income and Saving for an Unexpected Rainy Day


In about two weeks time it will be Chinese New Year… and that usually means UNEXPECTED INCOME! If you’re not familiar with what goes on during Chinese New Year, basically our parents or elders will give the children who are still single, or younger family members, a red packet filled with MONEY. Of course, it doesn’t always have to be Chinese New Year to have unexpected income; it could be more bonus than you thought, or birthday gifts, or even striking the lottery. So what do you do with these extra unexpected income comes your way?

Oftentimes, it could be so easy to just simply blow up all these “extra” money at one go on things that we’ve been lusting after but have no real need for; like 10 Tom Ford lipsticks or the entire set of brushes from Hakuhodo. Because these “extra” money just doesn’t register on our minds as being hard-earned, or even occur to us that these are just like money from anywhere else – so it should be treated in the same way as how you treat your regular paycheck.

As usual, I’m definitely not saying that you shouldn’t spend any of your money. But I think we should restrict ourselves to say, 1 Tom Ford lipstick, instead of going crazy. There needs to be a plan on the ready, about what you want to do when unexpected income comes your way, the same way that there should be a savings plan for your regular income. What I usually do when I get unexpected income is to put equal percentages as my regular savings into my bank account – so if I’m now saving 30% of my income every month, I would put 30% of these unexpected income into my savings as well. Whatever leftover that is not spent, will also go into my savings account.

This way, we also build a buffer for when an unexpected rainy day comes along. Then, we don’t have to look back and be upset that we blew up what we could have used to pay for the unexpected expenditures (or at least part of it) on something that we didn’t really need at all.

What about you? Do you make a point of saving unexpected income as well?

Image Credits: Nick Chan

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