Planning the expected

Planning is different from that provided for planning the unexpected (to be discussed later). Almost sounds stupid, huh? If your hopes, planning how much is really necessary and why write an article about it? Well, I've heard too many people complain that their auto insurance bill was due to two or three weeks and do not know how they will be able to pay for it. Can I find his bill is due every six months and usually by the same amount each time!

Of course, get a success with $ 600 insurance bill or a $ 1000 tax is certainly not fun. However, with a little planning of these bills should not cause much suffering.

The first thing to do is make a list of all bills paid last year which did not have each month. To begin with, I have listed some common below:

-- Insurance Auto
-- Taxes
-- Holidays
-- Christmas
-Birthdays/Weddings
Clothing -Spring/Winter
-- Tuition and books

The best way to calculate costs is to use the amount spent last year on the same elements, or at least close guess. If your salary is going to change, see the article entitled "Planning for your tax return" to calculate their taxes. Once you set up a list of expenses (scary, is not it?) Decide how you are going to pay for them. The easiest way would be to divide the total by 12 and save that amount each month. Of course, some of these "events" may be a few months. Simply divide the amount you plan to go by the number of months until the case and save that amount each month.

Another option is to allocate any additional paychecks or guaranteed bonuses to pay for certain events (not counting premiums in advance, it could lead to major problems). Let's say you get a bonus of $ 500 each Christmas. May You decide on the use of vouchers starting in January. Or, if you are paid every two weeks, compared to twice a month, you receive 2 extra paychecks each year (assuming you do not have a monthly budget that includes 2 extra paychecks). If you are paid every week, you will have four paychecks per year. If so, see a calendar to see what month you will receive paychecks. Maybe you will receive an additional salary during the same month that you are taking vacation or make sure your car is due. For all practical purposes, only plan to receive 75% of their paychecks further, because necessarily spend more money as they anticipate their extra pay.

Once you've determined how much you must save for later this expenditure is necessary to determine a savings account. One option is the system of provisioning in cash. With this system, just a label for each package of bills being and save the amount of savings in each envelope. Many people are trying this system (easy access to cash) and a little insecurity. Another option is to create a savings account with your bank for each of the bills, maybe even have money transferred automatically each monthly bill, although your bank May not allow multiple accounts. A third possibility, that I use now is the system spreadsheet. Each pay period, when the transfer of money in my savings account (an amount), I use a simple spreadsheet in your house to go where to allocate certain amounts in dollars. For example, if I put $ 100 in savings they can make $ 50 for insurance and $ 50 for vacation in my spreadsheet. Of course, keep a running total of each category and an overall total to ensure that my balance is correct.

A large part of any of these systems is that they have now set targets, which will save many headaches on the road. Following his person "accounts" more and more, you are actually watching you achieve your financial goals. Although economies May not give the same kind of instant gratification that spending does see small dollar amounts move towards an objective and knowing that you will not have to worry about your car insurance is very close.