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George
How to make a budget to cover non recurring expenses?
1) Summer electricity bills are higher due to AC, so do gas bills during winter.2) Tax, insurance are paid as lump sum two times a year.
3) Travel is usually booked months in advance. Quite a few travels throughout the year with no fixed intervals, length or frequencies.
4) Big spending often happens when there’s a friend visiting or special occasions
5) Big purchases (appliance replacement, remodeling, medical bill, etc)
How do I know at a given time in a month whether I’m on track to meet the budget?
Reviewing on a yearly basis doesn’t provide timely feedback on my spending habits.
What works for you? Is there a simple way to do it?
BradI just look at historical spending and divide by 12. With Fidelity Fullview it shows a progression in my annual budget through the year.
For example, let’s say I plan to spend $1200 for insurance with a lump sum payment I March.
For Jan and feburay it will say I didn’t spent say I spent $0 out of $100 budget for, and if I change the view from the since the beginning of the year it will then say $0 spent out if $200.
Once the March payment is made, it is read as overspending for the month but by the end of the year it will show I spent $1200 for $1200 budgeted.
I have a category like this for auto maintenance, property taxes, vacations, insurance, and gifts as my spending across those categories varies monthy or could be a “feast or famine” situation.
Tweetieallocate a dollar amount monthly to these categories, save the unused amounts for use later if the bill is higher. example: lights $180, if bill is 170 then save 10 aside for when the bill is more than 180.
next create sinking funds for vacations, insurance.
assign a monthly dollar amount to these categories and use it to pay the bill in full.
I have a savings account for insurance, vacations, etc etc
KevinI have a slush fund (HYSA) that I pull from and contribute to on a monthly basis. I just drained it to buy a big ticket item after building for 2 years.
Now I am refocusing my spending to get that back up.
BenI budget an annual amount for each and set some aside each week. When bills are low it builds up a fund to cover the higher periods.
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