Sinking funds for yearly costs
In shortRego, Christmas and gifts aren't surprises. Save a little for each every payday.
Car rego, Christmas, birthdays and the car service come every year. They only feel like surprises because they don't come every pay.
A sinking fund saves a little for each one every payday, so the money is there when the bill arrives.
Example: paid every 2 weeks
- Rego $780 a year
- $30 a pay
- Christmas $520
- $20 a pay
- Car service $390
- $15 a pay
- Gifts $390
- $15 a pay
- All four
- $80 a pay
Each cost ÷ 26. Paid weekly? ÷ 52, so $40 a week.
Starting late? Divide by the paydays left. Christmas in 8 paydays is $520 ÷ 8, which is $65 a pay. Or shrink the list.
In Stuffed, add bills with a date, like rego, under Bills that repeat on the Budget tab. For the rest, make an envelope and pick Add to it, so it grows each payday.
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Want the long version? Read Sinking funds, explained.
Related
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