Need help in overcoming budget-busting expenses? You know the big ones – Christmas, the quarterly insurance premium, the annual property taxes, etc.
Here is a simple way to smooth out these large expenses.
In the example, you can see some certified, bona-fide budget-busting expenses. Wouldn't you agree with me that a $450 or a $950 hit in a single month's budget would BLOW UP a budget? ABSOLUTELY! To eliminate this peak-and-valley, feast-and-famine style of living, take the time to list out all of your KNOWN, UPCOMING expenses and their associated annual cost.
In the example above, the annual budget-busting expenses total up to $4,400 per year.
Divide this number by 12 months, and you arrive at $367/month. If you save $367 EVERY SINGLE MONTH, you WILL be able to absorb these budget-busting expenses without the huge headaches that you may currently be experiencing!
Don't believe me? Ask anyone with a Christmas fund or a home mortgage escrow account! These are really nothing more than budget-buster smoothing tools! Why? Because mortgage companies and businesses have realized that if the costs are not smoothed out and absorbed monthly, the chances are unlikely of you having enough cash on hand when the bill arrives otherwise.