Week 4 Budgeting for Not-Monthly Bills

I don't like those pesky bills that only come once every 6 months.There's the car insurance, the property taxes, car repairs and maintenance, etc.

So I plan for them to make them less painful. This is how I do it. I pay them every month to myself. Some people call this a sinking fund.   I call it "less stress".

How to Set Up a Sinking Fund

Here's how I do it.  My bank allows me to have unlimited savings accounts. And they let me make automated transfers. So I look at my first bill.... car insurance. It's about $600 every 6 months. I get paid once a month. So I set up a transfer of $100 each month to be transferred to my car insurance account.   When the bill comes due, it's no big deal. I don't have to take a bigger hit that month because I have spread it out. I transfer it to my checking account and pay the bill. Done. I don't have to think about it any more. Sinking funds take the emotion out of your budget.

Now go do this with all your bills. Here's what my accounts look like. I used to have even more including clothing, hair and trash pickup.  It works for whatever you want to budget for without trying to hard. 

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