Do not leave it in your checking account though. You can put everything in one savings account, but many people prefer establishing separate accounts for different purposes. When it comes time to “pay” for this expense each month, we recommend you move it to a savings account. The important thing is that you know it’s earmarked for your insurance payment when the time comes. Instead of actually paying this $100 expense each month, you would set it aside or move it to a savings account. ![]() For example, if your auto insurance costs you $600 every six months, you would add a monthly expense of $100 per month. This way, you can start thinking of it as a monthly expense. Add one line item for the expense to your budget, and divide the yearly cost by 12 to get the monthly amount. Once you have your list of these periodic expenses, you can add them to your monthly budget plan. Include Irregular Expenses in Your Budget Vehicle costs (maintenance, repairs, parking permit, registration, taxes), clothing, entertainment, household items, insurance premiums (health, dental, vision, auto, homeowners, renters, life, disability), gifts, medical expenses, taxes, travel, tuition, and fees. The following expenses are among the most common irregular expenses: Obviously, you might not know to the penny what you might need to spend on some variable expenses in a given year, but you can make an educated guess. Some of them will be fixed expenses (that is, always about the same amount) and some will vary a good bit). That will help you see patterns and remember them all. Look through your bills and statements over the previous year or two if you can. The first step is to determine what irregular or periodic expenses you have and how much they cost you per year. ![]() They do not necessarily reflect the opinions of National Bank or its subsidiaries.įor financial or business advice, please consult your National Bank advisor, financial planner or an industry professional (e.g., accountant, tax specialist or lawyer).Give us a call, or visit your local branch anytime to chat with a personal financial representative and learn more. ![]() Views expressed in this article are those of the person being interviewed. The Bank cannot be held liable for the content of external websites or any damages caused by their use. The hyperlinks in this article may redirect to external websites not administered by National Bank. The details of this service offering and the conditions herein are subject to change. This article is provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities. National Bank and its partners in contents will not be liable for any damages that you may incur from such use. The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. Any reproduction, redistribution, electronic communication, including indirectly via a hyperlink, in whole or in part, of these articles and information and any other use thereof that is not explicitly authorized is prohibited without the prior written consent of the copyright owner. The copyrights on the articles and information belong to the National Bank of Canada or other persons. ![]() The articles and information on this website are protected by the copyright laws in effect in Canada or other countries, as applicable. Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank of Canada.
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