# Saving for Periodic Expenses

## What are periodic expenses?

Periodic expenses are costs that occur on an irregular basis rather than monthly. Here are some examples of periodic monthly expenses you may have:

• Tuition and fees
• Books for classes
• Back-to-school supplies for yourself and/or children
• Car maintenance
• Car registration and inspection
• Car insurance (if you’re not paying it monthly)
• Holiday spending
• Birthdays
• Kids’ summer camps
• Deposits for rental housing (if a move is in your future)
• Travel expenses (to visit family, attend events, vacation)
• Self-employment taxes

## How do I incorporate them into my monthly budget?

Once you have identified your periodic expenses, break them into monthly amounts.

#### Example 1

Last December you spent about \$420 on holiday spending. You purchased things like gifts, wrapping supplies, decorations and food for parties.  This year you want to have that money before the holiday season begins. To figure the expense as a monthly amount take \$420 and divide by 12 (the number of months in a year):

\$420 ÷ 12 = \$35

Include \$35 as your monthly holiday expense in your monthly budget. Stash that money an account separate from the account you use daily, so you’re not tempted to use it!

#### Example 2

You pay \$620 every six months for car insurance.  To figure expense as a monthly amount take \$620 and divide by 6.

\$618 ÷ 6 = \$103

Include \$103 every month as your car insurance expense in your monthly budget. Stash that money in an account separate from the account you use daily so it’s there when you need it.