Making a monthly budget requires you to list out all of the expenses you generally incur in any given month. Common components of a monthly budget include rent or a mortgage payment, utility bills, groceries, credit card payments, a cell or landline phone bill, car payments and the insurance that goes along with the vehicles, and cable or other television services. But, not every expense you have is one that you have to pay on a monthly basis. However, it is just as important to budget for onetime expenses as it is to budget for recurring expenses.
Tips for saving for expenses that are not monthly, like annual homeowner’s dues or car tags, include:
- Opening a separate savings account that is earmarked for these expenses. A good example is an annual expense, which allows you to divide the amount of the expense by twelve and then deposit that amount of money into a separate account on a monthly basis. In this way the expense is included in your monthly budget, but you are not making the payment on a monthly cycle.
- Use bonuses and gifts to establish a savings account, the use the money in the savings account for onetime expenses.
- Include a miscellaneous category in your monthly budget and determine an amount to save each month for those expenses. This will leave extra cash in your account, for use when a onetime expense or emergency arises.
Whichever method you decide, make sure you take steps to set aside money for things that come up only once or twice a year. When you have saved the money needed for large onetime expense, you can avoid resorting to use of a credit card or the need to take out a loan to cover the fees. The more frequently you are able to devote a portion of your paycheck to a onetime expense, the more likely the money will be there when needed. Be sure to include other expenses, like the cost of gas and entertainment, in your budget as well. These expenses are not ones you see monthly by way of a monthly statement, but are expenses you incur nonetheless One of the biggest reasons people are unable to stick to a budget is because items are overlooked. For help with your budget, call our office. Or, if you do not have enough income to cover your monthly expenses, call us to learn your legal remedies for debt management.
If you have questions about budgets and how to save for a onetime expense, call our office for answers. Call a Plantation, Florida debt relief attorney today for more information.