Plan for bills that don't come every month

Budgets often break on bills that come once or twice a year. Turn them into small monthly amounts and they stop being emergencies.

Steps

1. List yearly costs from last year's statements
2. Add them up
3. Divide by 12
4. Save that amount every month in a separate account or bucket

Example

Car registration $180, holiday gifts $600 and a $420 insurance premium add up to $1,200 a year, or $100 a month.

General educational information, not financial advice. The Pennies Budget isn't paid by any company mentioned here.