Do you ever feel like your finances have been side-swiped by a major expense, and that sudden expense causes immense stress and pain?
Chances are that you have, and it probably was a “Known Upcoming Non-Monthly Expense.” The key word in that phrase is “non-monthly“. Because it is not a monthly expense, it can tend to become an “out of sight – out of mind” item that seems to appear suddenly out of nowhere.
Think about it. Have any of the below items happened to you before and created a financial emergency?
- Car tires need replaced
- Sickness that created enough hospital bills to consume the entire insurance deductible (or worse yet – happened without insurance)
- Heating & Air went out
- Annual life insurance premium
- Annual property taxes
Just go ahead and say, “Yes, I have!” because we ALL have experienced one or more of these scenarios.
Here’s the solution – use the “Known Upcoming Non-Monthly Expenses Calculator” to transform your “non-monthly” expenses in “monthly” expenses. See the example below:
Do you see it? By converting the “non-monthly” expenses to a “monthly” expense of $579 every month, you have substantially lessened the impact on your budget! Instead of having to suddenly come up with $1,200 when the annual property tax bill arrives, the money will just be there!
- Be sure to recalculate your monthly savings number at least once per year
- Don’t forget more long-term expenses such as college, weddings, vehicle replacement, and major home renovations
- Set your savings for these expenses AUTOMATIC – by establishing an auto-draft
NOTE: This tool and dozens more are covered in more detail in my book, I Was Broke. Now I’m Not.