Budgeting

Building a Monthly Budget Around Irregular Expenses

The bills that arrive twice a year still belong in the monthly plan.

Make a yearly list

Look back over twelve months of statements and calendars. Include insurance premiums, registration, memberships, gifts, maintenance, travel, and medical costs that did not happen every month.

Create small monthly buckets

Estimate the annual amount and divide it by twelve. Keep the money in a separate savings space or track it clearly so a high balance is not mistaken for money available to spend.

Expect estimates to move

The goal is not perfect forecasting. Add a little margin, review after the expense arrives, and update the monthly amount for the next cycle.

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Theo Martins

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