Budgeting for Periodic Expenses: Funding Ahead of Time
- Published Jun 05, 2018
Budgeting for Periodic Expenses: Funding Ahead of Time
After you make a thorough list of periodic expenses, estimate how much you expect to spend on each activity in the course of the year. Once you have the annual amount, divide it into 12 and that’s the monthly amount you should set aside. If you’re using Mvelopes, it’s very easy to do. Just create a virtual envelope for each periodic expense and start funding it each month with the predetermined amount.
Don’t underestimate the power of being financially prepared for those periodic expenses since they can add up to quite a good amount of cash that you will otherwise have to sacrifice from your savings, or use credit, in order to cover them. Expect the unexpected and prepare--you’ll be glad you did!
Today's tip brought to you by Mvelopes and Money4Life Coaching.
