Budgeting For Expected Costs

Photo by: Nicholas T

Budgeting Your Income for Upcoming Expected Costs

It’s getting colder outside, which always reminds me that time marches forward regardless of how fast or slow it might feel sometimes.

Is your roof going to need some love next year? Do you know you’ll have to upgrade your computers soon? Do you pay your insurance twice a year?

When you’re expecting expenses, they can sometimes feel like a ticking time-bomb in your bank account.

If you’d like to get rid of some of the anxiety that comes with knowing you’ll have to pay for something soon, you can easily use your budget for what I call “intermediate savings.”

If you have a rough idea of how much you’ll need in a few months, or a year, simply break that total down by month and stash that amount away in a “Roof,” “Computer,” or “Insurance” category on your budget each month.

It’s a pretty simple way to get rid of that doomsday stress – and when the day of reckoning comes, you’ll be glad it’s there.

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