Back to Budgeting Basics
Lesson 14 6 minute lesson Interactive
Planning for Annual Expenses
Turn yearly fees, school costs, gifts, and renewals into small monthly amounts that do not surprise your budget.
Your progress0%
Lesson goal
Use sinking funds to prepare for predictable costs that happen less than once a month.
Three ideas to keep
1
List known expenses for the next twelve months
2
Divide each cost by the months remaining
3
Keep planned costs separate from emergencies
Try it
Make the call
A $240 annual fee is due in six months. How much should you set aside each month?
Knowledge check
Lock it in
Which account is best suited for a predictable car registration bill?
Finish both activities