irregular-expenses
2 questions
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How do I budget for irregular expenses?
Budget for irregular expenses by listing every non-monthly cost you expect in the next 12 months, adding them up, dividing by 12, and setting aside that amount each month into a dedicated account. This converts unpredictable hits into a steady monthly line item.
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What is a sinking fund?
A sinking fund is a dedicated savings account where you set aside a fixed amount each month toward a known future expense — car registration, holiday gifts, a vacation — so the cost doesn't blow up your budget when it arrives.