I keep getting surprised by annual expenses
Irregular expenses are predictable once they are written down. The tool for this is a monthly set-aside.
Steps to work through
- 1List every expense that arrives once or twice a year with an approximate amount and month.
- 2Divide each amount by the number of months until it is due.
- 3Add those monthly amounts together — that is your combined set-aside.
- 4Keep the set-aside money separate from everyday spending money.
- 5Update the list each time an expense is paid so the next cycle starts immediately.
These are educational organizing steps, not financial, legal or tax advice. For advice specific to your situation, speak with a qualified professional.