How can individuals effectively budget for unexpected expenses?.

To effectively budget for unexpected expenses, start by establishing an emergency fund that covers 3-6 months' worth of living expenses. Monitor your monthly spending and categorize expenses into essentials and discretionary. Allocate a specific percentage of your income towards savings each month. Regularly review and adjust your budget to accommodate any changes in income or expenses. Lastly, consider using budgeting apps for tracking and managing your finances more efficiently.