Caution! How to avoid accidental expense in your spending plan?

One thing you might encounter during the process of tracking expense is there are always unexpected expense pop up and disrupt your spending plan (insurance premium, car maintenance, income tax, property tax, etc.…).

However, if you look into those spending closely, it might not be a unexpected expense. Did it appear before during the last 3 months? Last 6 months? Or during the same time period last year?

Yearly payabl bills are the most neglected bill category when we are consolidating our spending because it don’t happen frequently in our daily live and it easily slip out of our mind. This can cause frustration when you are trying to calculate your monthly spending if you didn’t pay attention to it.

There are few ways to accommodate this type of expense into your calculation of your monthly spending:

  1. Divide that yearly payable bill into 12 equals amount and add it into your monthly spending plan. Prepare in advance every month for this expense.
  2. Keep a payment schedule of all the yearly payable bills to avoid unexpected spending situation from happening.
  3. Reduce the numbers of yearly payable bills to simplify your spending plan, the simpler the better.

33 Comments

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33 Responses to Caution! How to avoid accidental expense in your spending plan?

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