Managing Large Single Payment Bills

How to Budget for Irregular Expenses

Manage large single bill payments like semi-annual or quarterly bill payments with a regularly funded reserve account. We started doing this with our insurance and property tax bills which can be rather large single payments, but manageable if paid with a fund that we have paid into every month. It's much easier if these accounts are funded automatically, so you don't forget. Simply total your irregularly occurring bills and divide by twelve, then add this monthly automatic withdrawal from your checking account to a specially designated savings account to fund your large single payment bill or bills.

This has really helped us to better budget our money month to month.