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Preparing For The Unexpected

Bills Can Come At Any Time - Expect the Unexpected

Notice throughout your past how some months were good and other months were bad financially. Also, do you remember a time when a big bill came out of nowhere and destroyed your bank account, and then ate into your credit card? This is now your chance to get even.

 

The Unexpected

List Irregular Bills

A simple fact of the matter is that not every bill or expense comes when you get paid. Some are quarterly, half yearly, yearly or even longer. Make a list of those bills, I will help start the process. For example:

 

Quarterly:

Half Yearly:

Yearly:

Longer:

Add Irregular Bills to the Budget Monthly

To ensure the money for these items are provided for, I put away enough money each month to cover them. For example, the electricity, it comes quarterly, and for example is $300. My wife and I put aside $100 per month into a separate bills account from which the electricity company automatically deducts when it comes due. All I have to do is make sure I keep an eye on price increases and our usage. This can apply to any expense.

Budget for Future Purchases

Let’s choose my pet love and favourite bank account destroyer, cars. Not only am I a lover of these wealth destroyers, I have to modify them too. I also get bored of them every two to three years, so I need to plan for my purchases and minimise my costs. I know every two to three years I will have to fork out $5,000 to $7,000 for change over expenses and losses. I can solve this by dividing $7,000 by 36 months and put away $195 every month, thus it will be on hand when I need it.

Re-evaluation Your Cashflow

After plugging in the irregular bills do you have a surplus or loss in your monthly cashflow? Does this open your eyes a little? Read on.