I have a few buckets for large expenses. My budget includes 1.5% of house value per year ($2,700), I have a separate "one time expenses" budget of $3k annually (this will cover replacing cars and anything that the $2700 in house repairs dont cover). I also have $100k held outside my portfolio to "prime the kitty" for these types of things.
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.