Comments on: Non-Monthly Expenses – How to Budget for Lump Sum Payments http://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/ Debt Credit & Personal Finance | Bible Help Wed, 10 Mar 2010 21:05:31 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: daydayhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-5490 dayday Mon, 21 Dec 2009 02:54:04 +0000 http://www.debtfreeadventure.com/?p=2920#comment-5490 Great advice! I learned the hard way, my car insurance is due each January, way too close after Christmas. Learned to budget for this expense about 3 years ago, I've embraced that it's due directly after the holiday's, due Jan 11th, 2010... I don't overspend for Christmas because I know the premium is due soon. Great advice! I learned the hard way, my car insurance is due each January, way too close after Christmas. Learned to budget for this expense about 3 years ago, I’ve embraced that it’s due directly after the holiday’s, due Jan 11th, 2010… I don’t overspend for Christmas because I know the premium is due soon.

]]> By: How Much to Budget for Car Maintenance? | fivecentnickel.comhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3915 How Much to Budget for Car Maintenance? | fivecentnickel.com Thu, 05 Nov 2009 12:40:59 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3915 [...] Espe, a frequent DebtFreeAdventure, says the he budgets $2,000/car per year, and also reminds us that although there is no exact answer that will work for [...] [...] Espe, a frequent DebtFreeAdventure, says the he budgets $2,000/car per year, and also reminds us that although there is no exact answer that will work for [...]

]]> By: Weekly Roundup – Disney Shanghai Edition | fivecentnickel.comhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3877 Weekly Roundup – Disney Shanghai Edition | fivecentnickel.com Wed, 04 Nov 2009 03:38:19 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3877 [...] How to Budget for Lump Sum Payments [...] [...] How to Budget for Lump Sum Payments [...]

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3412 Matt Jabs Wed, 28 Oct 2009 03:07:46 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3412 Yeah, join the club. It took us about 8 months to get our budget "working." Now it will continually be updated, but it has actually been "in place" and helping for 2 months. It is great. I can honestly say - mark my words - I will budget for the rest of my life. And I will also keep a spending journal. Yeah, join the club. It took us about 8 months to get our budget “working.” Now it will continually be updated, but it has actually been “in place” and helping for 2 months. It is great. I can honestly say – mark my words – I will budget for the rest of my life. And I will also keep a spending journal.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3389 Matt Jabs Tue, 27 Oct 2009 20:59:53 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3389 Interesting Robert. We also set quite a bit aside for auto maintenance, but not that much. We do $1,200/car/year.What does everyone else do? I think this would be a good post! Maybe tomorrow. ;-) Interesting Robert. We also set quite a bit aside for auto maintenance, but not that much. We do $1,200/car/year.

What does everyone else do? I think this would be a good post! Maybe tomorrow. ;-)

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3388 Matt Jabs Tue, 27 Oct 2009 20:57:17 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3388 It's true Melanie. If people struggling with budgets can grasp these 3 simple facts:1. Keep a spending journal 2. Use the envelop system for cash categories 3. Plan for non-monthly expensesEveryone would be able to do it! It’s true Melanie. If people struggling with budgets can grasp these 3 simple facts:

1. Keep a spending journal
2. Use the envelop system for cash categories
3. Plan for non-monthly expenses

Everyone would be able to do it!

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3386 Matt Jabs Tue, 27 Oct 2009 20:54:02 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3386 It is a great feeling... and the coolest part is, you don't even miss the money that goes out. And that can also be a lesson in saving - you don't notice little amounts automatically taken out. It is a great feeling… and the coolest part is, you don’t even miss the money that goes out. And that can also be a lesson in saving – you don’t notice little amounts automatically taken out.

]]> By: David @ Money Under 30http://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3359 David @ Money Under 30 Tue, 27 Oct 2009 15:18:48 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3359 Great post, Matt. I think this is what trips most people up with budgeting...it's funny how various "non-monthly" expenses seem to come up every month!I do the exact same thing...contribute to a dedicated ING savings account for these. .-= David @ Money Under 30´s last blog ..<a href="http://www.moneyunder30.com/buyers-agent" rel="nofollow">What a Buyer’s Agent Can Do For You</a> =-. Great post, Matt. I think this is what trips most people up with budgeting…it’s funny how various “non-monthly” expenses seem to come up every month!

I do the exact same thing…contribute to a dedicated ING savings account for these.
.-= David @ Money Under 30´s last blog ..What a Buyer’s Agent Can Do For You =-.

]]> By: Matthewhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3357 Matthew Tue, 27 Oct 2009 15:14:23 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3357 The financial version of the real estate adage "Location Location Location" might very well be "Plan Plan Plan". I'm glad to see that's Step #1.Good stuff. .-= Matthew´s last blog ..<a href="http://www.soundmindinvesting.com/weblog/2009/10/in-progress---s-1.html" rel="nofollow">Sound Mind Investing partners with Debt-Proof Living</a> =-. The financial version of the real estate adage “Location Location Location” might very well be “Plan Plan Plan”. I’m glad to see that’s Step #1.

Good stuff.
.-= Matthew´s last blog ..Sound Mind Investing partners with Debt-Proof Living =-.

]]> By: Kelly Whalenhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3356 Kelly Whalen Tue, 27 Oct 2009 15:05:39 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3356 We do a yearly budget which includes a lot of these expenses. Since we are paid bi-weekly I'm using those "extra" checks as short term savings for non-monthly expenses. It forces us to live off of less, and gives us a good buffer. .-= Kelly Whalen´s last blog ..<a href="http://feedproxy.google.com/~r/TheCentsibleLife/~3/hdvzkvdkRPw/" rel="nofollow">La Cie External Hard Drive Giveaway</a> =-. We do a yearly budget which includes a lot of these expenses.
Since we are paid bi-weekly I’m using those “extra” checks as short term savings for non-monthly expenses.
It forces us to live off of less, and gives us a good buffer.
.-= Kelly Whalen´s last blog ..La Cie External Hard Drive Giveaway =-.

]]> By: Broke M.B.A.http://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3310 Broke M.B.A. Tue, 27 Oct 2009 01:40:53 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3310 Great advice Matt. I also use ING Sub Accounts for my sinking funds and have monthly automated deposits set-up from my checking account. It's taken several months for us to truly get our budget right, but the lack of surprises every few months has been well worth the effort. .-= Broke M.B.A.´s last blog ..<a href="http://feedproxy.google.com/~r/TheBrokeMba/~3/wa0bA_qyRYg/" rel="nofollow">Tap Retirement Accounts For Down Payment?</a> =-. Great advice Matt. I also use ING Sub Accounts for my sinking funds and have monthly automated deposits set-up from my checking account. It’s taken several months for us to truly get our budget right, but the lack of surprises every few months has been well worth the effort.
.-= Broke M.B.A.´s last blog ..Tap Retirement Accounts For Down Payment? =-.

]]> By: Robert Espehttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3304 Robert Espe Tue, 27 Oct 2009 00:08:40 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3304 I use Crown Money Matters Software (now Money Map, Crown Mvelopes, and mint.com are online solutions) to do the same thing on my computer while keeping all my money in one account.In addition to my $10k emergency fund, I keep a fund that is equal to my catastrophic deductible for the year and pay all medical bills from there (build it up over a year, one paycheck at a time).I also assume that one car will cost $2k in maintenance a year and budget accordingly per month, for me that has been about right (it is less when the vehicle is newer, but even new vehicles have a maintenance schedule, and the difference accumulates to offset the cost of an eventual new vehicle). I use Crown Money Matters Software (now Money Map, Crown Mvelopes, and mint.com are online solutions) to do the same thing on my computer while keeping all my money in one account.

In addition to my $10k emergency fund, I keep a fund that is equal to my catastrophic deductible for the year and pay all medical bills from there (build it up over a year, one paycheck at a time).

I also assume that one car will cost $2k in maintenance a year and budget accordingly per month, for me that has been about right (it is less when the vehicle is newer, but even new vehicles have a maintenance schedule, and the difference accumulates to offset the cost of an eventual new vehicle).

]]> By: Melaniehttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3301 Melanie Mon, 26 Oct 2009 23:35:42 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3301 If you do nothing else financially, do this. Christmas, vacation, school supplies--3 kids, once a year, an easy hundred bucks!-- then pictures after that-- I never think of this stuff. The vet bills, the doctor copays. How about that birthday present, and why did I have three aunts born in October? Or the license plates--renewable right before Christmas or right after, just because our birthdays are in such financially flush months.These used to make me crazy... until I started this fund. And now, it's so peaceful. We do the same thing, with an ING account, and then I have a spreadsheet so I can split the deposit up into the categories-- and track the expenses. However-- be warned-- these savings accounts will only allow 6 withdrawals a month. Most months that's not a problem, but if you have 3 sick kids in one week and car tags the next week-- and those weeks are in December when you're buying Christmas presents, you'll run over 6 very quickly.My advice-- track the irregular expense amounts and do a transfer per week. In December do pre-emptive transfers in the beginning of the week and take it out in cash-- to stay on the Christmas budget. :-)Great post. This is the budget saver to end all budget savers. If you do nothing else financially, do this. Christmas, vacation, school supplies–3 kids, once a year, an easy hundred bucks!– then pictures after that– I never think of this stuff. The vet bills, the doctor copays. How about that birthday present, and why did I have three aunts born in October? Or the license plates–renewable right before Christmas or right after, just because our birthdays are in such financially flush months.

These used to make me crazy… until I started this fund. And now, it’s so peaceful. We do the same thing, with an ING account, and then I have a spreadsheet so I can split the deposit up into the categories– and track the expenses. However– be warned– these savings accounts will only allow 6 withdrawals a month. Most months that’s not a problem, but if you have 3 sick kids in one week and car tags the next week– and those weeks are in December when you’re buying Christmas presents, you’ll run over 6 very quickly.

My advice– track the irregular expense amounts and do a transfer per week. In December do pre-emptive transfers in the beginning of the week and take it out in cash– to stay on the Christmas budget. :-)

Great post. This is the budget saver to end all budget savers.

]]> By: Jeffhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3300 Jeff Mon, 26 Oct 2009 23:22:09 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3300 Matt,I love ING too. It makes automating bill payment sooo easy. Good walk through on the planning part. Budgeting for non-monthly items is what use to get me in trouble. It kept me living pay check to pay check while not being able to pay down debt because of the non-monthly bills. Using almost the same method as you just discussed, we were able to throw money into each ING account on pay day. Then the payments are drafted at the later date. Just the other day my car insurance was drafted, I completely forgot about it but since everything runs smoothly it was paid without a problem. That was a great feeling.Jeff .-= Jeff´s last blog ..<a href="http://deliverawaydebt.com/2009/10/21/signs-of-madness/" rel="nofollow">Signs of Madness</a> =-. Matt,

I love ING too. It makes automating bill payment sooo easy. Good walk through on the planning part. Budgeting for non-monthly items is what use to get me in trouble. It kept me living pay check to pay check while not being able to pay down debt because of the non-monthly bills. Using almost the same method as you just discussed, we were able to throw money into each ING account on pay day. Then the payments are drafted at the later date. Just the other day my car insurance was drafted, I completely forgot about it but since everything runs smoothly it was paid without a problem. That was a great feeling.

Jeff
.-= Jeff´s last blog ..Signs of Madness =-.

]]> By: Jason @ MyMoneyMinutehttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3294 Jason @ MyMoneyMinute Mon, 26 Oct 2009 21:48:24 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3294 Nice article, Matt.@Peter - that just goes to show that a budget is an active and evolving thing! It takes time (and a few lumps) to get it down. Once you get it down, life changes! What it does do, is force you to anticipate future expenditures rather than react to them. .-= Jason @ MyMoneyMinute´s last blog ..<a href="http://feedproxy.google.com/~r/mymoneyminutecom/~3/nuDTsBRpypo/" rel="nofollow">Your Financial Goals: Review & Renew!</a> =-. Nice article, Matt.

@Peter – that just goes to show that a budget is an active and evolving thing! It takes time (and a few lumps) to get it down. Once you get it down, life changes! What it does do, is force you to anticipate future expenditures rather than react to them.
.-= Jason @ MyMoneyMinute´s last blog ..Your Financial Goals: Review & Renew! =-.

]]> By: Peterhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3285 Peter Mon, 26 Oct 2009 19:57:53 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3285 Great advice Matt. When we first started doing our budget, one expense that we forgot all about (even though we shouldn't have) was our car insurance. A couple of months later we were stuck with a $600 bill and we hadn't budgeted for it. We won't make that mistake again. .-= Peter´s last blog ..<a href="http://feedproxy.google.com/~r/BibleMoneyMatters/~3/lnWKij7O0D8/buy-and-hold-investing-for-beginners.html" rel="nofollow">Buy And Hold Investing For Beginners</a> =-. Great advice Matt. When we first started doing our budget, one expense that we forgot all about (even though we shouldn’t have) was our car insurance. A couple of months later we were stuck with a $600 bill and we hadn’t budgeted for it. We won’t make that mistake again.
.-= Peter´s last blog ..Buy And Hold Investing For Beginners =-.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3281 Matt Jabs Mon, 26 Oct 2009 19:06:06 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3281 Excellent article Lydia! Excellent article Lydia!

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3280 Matt Jabs Mon, 26 Oct 2009 18:58:18 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3280 That is great advice. Sort of like a pseudo "envelope system" for non-monthly expenses. That is great advice. Sort of like a pseudo “envelope system” for non-monthly expenses.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3277 Matt Jabs Mon, 26 Oct 2009 18:31:10 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3277 Oh heavens no! We don't have a membership to a country club... those are just <strong>examples</strong> of some non-monthly expenses that folks may have.Sorry for the confusion, thank you for bringing it up so I could clarify! :-) Oh heavens no! We don’t have a membership to a country club… those are just examples of some non-monthly expenses that folks may have.

Sorry for the confusion, thank you for bringing it up so I could clarify! :-)

]]> By: karynhttp://www.debtfreeadventure.com/non-monthly-expenses-how-to-budget-for-lump-sum-payments/#comment-3275 karyn Mon, 26 Oct 2009 17:52:18 +0000 http://www.debtfreeadventure.com/?p=2920#comment-3275 Thanks for the info! I have been "burned" by those types of expenses - they seem to come up so quickly. I am curious about your membership to the country club...seems, so, oddly "unfrugal"! Thanks for the info! I have been “burned” by those types of expenses – they seem to come up so quickly. I am curious about your membership to the country club…seems, so, oddly “unfrugal”!

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