Do you Have Savings for Non-Monthly Expenses?

Your non-monthly expenses are an important part of your monthly spending plan (budget).

Our true expenses fluctuate from month to month, and for the most part, we can take care of small changes to our spending plan without going over budget. However, in a month where we have a large non-monthly expense due, it can throw us off if we don’t have the savings to take care of that expense.

Not planning for your non-monthly expenses each month will leave you with a surprise bill, or worse, put you into debt.

Most individuals do not consider their non-monthly expenses when creating their monthly spending plan. I know I didn’t, and I was always “surprised” when the bill came around, even though it happened every year. These surprises created a lot of stress when those bills came due. And I ended up adding to my debt.

Like many individuals, I did not learn how to plan or save for these expenses. Even though I knew that I should have savings for these types of expenses, I never seemed to have money left at the end of each month to put anything into savings. And I had no idea how much these expenses cost me on an annual basis!

Get clear, create a calendar, and start saving.

The first thing you want to do is get clear and identify ALL of your non-monthly expenses. If you are good with spreadsheets, start there. Otherwise, create a list with 3 columns in your Notes App or on a piece of paper. Write down the expense, the amount due, and the due date.

I have created a downloadable list of various non-monthly expenses for you to consider - feel free to add your own. This is in a Google Sheets spreadsheet format that you can use as is or use it as a template and create your own. You can download it here.

Add to your new found clarity by creating a simple non-monthly expenses calendar to remind you and avoid “surprises.”

You can use paper and pen or create a non—monthly expense calendar in any document or spreadsheet app. You can also utilize SHEET2 on the same downloadable Google Sheet above, or use it as a template to create your own.

Once you have created your list of non-monthly expenses, use it to fill in your Non-Monthly Expenses Calendar. Fill in the name of the expense in the first column and the amount in the column for the month the expense is due. If it is due the first 5 days of a month, I recommend paying it the month prior to avoid late fees.

Now add up all the expenses in each monthly column to determine that month’s non-monthly expenses. Then add up all the monthly totals to determine your annual non-monthly expenses. Divide this number by 12 to determine how much you want to save each month to cover ALL of these expenses. This becomes your monthly savings goal for non-monthly expenses.

Now you have a clear, detailed listing of all your non-monthly expenses, when they are due, and a savings goal to ensure you are prepared.

Even though this is technically “savings,” I want you to think of it as a monthly expense.

This amount may surprise you and/or overwhelm you if you have never considered saving for non-monthly expenses.

It overwhelmed me. And it woke me up to the reality that I was living WAY beyond my means - by $1000 a month.

How do you start saving $1000 a month when you have no money left at the end of each month?

It’s a choice. For me, it was a choice to take care of myself and be a better steward of my money. For you, it may mean starting slow and building to your monthly savings goal. It may mean earning more money. It may be spending less money on wants and/or things you don’t truly value.

Do what you can with what you have.

If you are unable to save 1/12th of your annual non-monthly expenses, start saving an amount you can afford to save each month and work towards your monthly goal. Even if it’s $25/week or $50/a paycheck. Over time you will be able to add to your savings.

You don’t need all 12 months worth of non-monthly expenses in your savings.

You only need enough to cover the next month’s expenses. Each month is different. Eventually, you will reach your savings goal and you can automate your savings.

If you are already saving for non-monthly expenses, well done!

Use the list and calendar to help you clarify if you’re on the right track.

Wherever you are on your savings journey, this exercise will support you experiencing greater financial security.

Being a good steward of our money feels good. It decreases feelings of anxiety, stress, and shame. It increases our ability to experience greater calm, clarity, and confidence in our relationship with money. It empowers us to take care of ourselves, now and in the future.