Referring to expenses or costs that are not included in a pre-approved financial plan or budget. These expenditures arise unexpectedly, due to unforeseen circumstances, urgent needs, or opportunities that weren't anticipated during the budgeting process. unbudgeted items require careful consideration regarding their impact on financial stability and often necessitate budget adjustments or alternative funding sources. The need to address unbudgeted costs highlights the importance of contingency planning and financial flexibility within an organization or personal finance framework.
Unbudgeted meaning with examples
- The unexpected roof leak led to significant unbudgeted repairs, forcing the homeowner to tap into their emergency savings fund. This unforeseen expense created a strain on their monthly finances until funds could be reallocated.
- The project team found the need to source extra software after a system breakdown, which necessitated some unbudgeted costs. It was a trade-off to avoid project delays even if they were unexpected.
- During the annual audit, it was discovered that there were several unbudgeted expenditures within the marketing department. The CEO and CFO would need to make decisions in terms of their financial stability.
- The non-profit organization faced an unbudgeted surge in demand for their services following the natural disaster. They had to quickly find creative and sustainable ways of keeping operations afloat.