Yusra3
VIP Contributor
From holiday spending to annual bills, there are certain large expenses that only come up a few times per year. These can strain your finances if you don't plan for them. With some budget adjustments, you can smoothly handle once-a-year costs without going into debt.
Make a list of annual big-ticket items - Write down all the major expenses that you know only happen annually or semi-annually. This may include property taxes, insurance premiums, association fees, major vacations, holiday shopping, registration/licensing costs, etc.
Know the due dates - For each item, determine when the payment or purchase is due. Mark your calendar so you remember to budget the right amount by the deadline.
Divide by pay periods - Take the total amount due for each big annual expense and divide it evenly by the number of paychecks you have before the due date. Dedicate this pay period amount for savings just for that purchase.
Automate transfers to separate savings accounts - Have funds auto-transferred from each paycheck into different savings accounts - one allocated for each major once-a-year expense. This makes saving painless since you never see the cash in your primary checking.
Invest windfalls - Any work bonuses, tax refunds or monetary gifts should be invested into these annual expenses savings funds whenever possible. Even an extra $100 or $200 dollars helps.
Shop around - A few months before each big purchase, compare prices from multiple vendors to snag the best deal. Saving even 5-10% off the total cost helps stretch your savings.
Look for off-season deals - For expenses like vacations, major trips are often cheaper if booked during slower off-peak seasons when demand is lower.
Pay ahead to get discounts - Find out if prepaying 6-12 months earlier nets you a discount on things like insurance or registration fees. Paying upfront means you don't risk forgetting later.
Slash discretionary spending as needed - If you're struggling to save enough each pay period, cut back on dining out, entertainment and impulse purchases. Limiting your discretionary spending helps direct more towards once-a-year costs.
With planning, discipline and some budget tweaks - you can build up the funds needed to smoothly afford those bigger once-a-year expenses when they come around.
Make a list of annual big-ticket items - Write down all the major expenses that you know only happen annually or semi-annually. This may include property taxes, insurance premiums, association fees, major vacations, holiday shopping, registration/licensing costs, etc.
Know the due dates - For each item, determine when the payment or purchase is due. Mark your calendar so you remember to budget the right amount by the deadline.
Divide by pay periods - Take the total amount due for each big annual expense and divide it evenly by the number of paychecks you have before the due date. Dedicate this pay period amount for savings just for that purchase.
Automate transfers to separate savings accounts - Have funds auto-transferred from each paycheck into different savings accounts - one allocated for each major once-a-year expense. This makes saving painless since you never see the cash in your primary checking.
Invest windfalls - Any work bonuses, tax refunds or monetary gifts should be invested into these annual expenses savings funds whenever possible. Even an extra $100 or $200 dollars helps.
Shop around - A few months before each big purchase, compare prices from multiple vendors to snag the best deal. Saving even 5-10% off the total cost helps stretch your savings.
Look for off-season deals - For expenses like vacations, major trips are often cheaper if booked during slower off-peak seasons when demand is lower.
Pay ahead to get discounts - Find out if prepaying 6-12 months earlier nets you a discount on things like insurance or registration fees. Paying upfront means you don't risk forgetting later.
Slash discretionary spending as needed - If you're struggling to save enough each pay period, cut back on dining out, entertainment and impulse purchases. Limiting your discretionary spending helps direct more towards once-a-year costs.
With planning, discipline and some budget tweaks - you can build up the funds needed to smoothly afford those bigger once-a-year expenses when they come around.
