For any irregular expenses (e.g. insurance premiums, remodeling projects) I've setup separate online savings accounts with automatic transfers every pay period.
- Create a Yearly Budget to make future projections, handle variable income, plan
for irregular expenses (non-monthly), and budget variable expenses like seasonal electricity or water bills.
The third bucket is set aside for saving for the future, and the final bucket — the one that gets most people into trouble — is
for irregular expenses, those once - or twice - a-year bills that aren't predictable on a monthly basis.
That is actually a great way to track savings goals and money you're saving
for irregular expenses.
Funds are a way to save
for irregular expenses (like car repairs, vacations, etc.).
Not exact matches
It's best to have a separate fund
for these large,
irregular expenses.
Your Emergency Fund is
for unexpected
expenses, you know your income is
irregular so plan
for the irregularities by saving some of your income in the «good» months so you will not struggle during the «slow» months.
So if you're spending $ 6,000 on
irregular living
expenses, $ 500 a month has to go into that fourth bucket to provide
for future
expenses.
In addition to a dedicated savings account
for emergencies, we recommend maintaining a second savings account where you set money aside
for irregular bills or
expenses — those that occur sometime each year, but not each month.
• Build your second spending plan to pay
for your annual,
irregular and other monthly
expenses like clothing, gifts, school fees and entertainment.
I'll also give you specific money management tips, like psychological hacks, negotiation scripts, advice on handling
irregular income /
expense for entrepreneurs and the best savings accounts to use.
Create an action plan
for yourself that includes regular and
irregular expenses as well as short, mid and longer - term financial goals.
You should not be paying
for known
irregular expenses out of your emergency fund.
However,
for the short to medium - term goals like furniture replacement, vacation, and
irregular expenses, tracking multiple savings accounts can be annoying.
This might be necessary if you were using the savings tracker to save
for a few different
irregular expenses (like a semi-annual insurance bill, quarterly estimated taxes, Christmas, etc.) and needed to make a single transfer into your spending account to make payments on more than one
irregular expense.