Saving for Non-Monthly Expenses: A Game-Changer

Saving for Non-Monthly Expenses

Saving for non-monthly expenses will transform your financial life. It is truly a game-changer — and if you're in debt, it will help you break the cycle of using credit cards to pay for annual expenses you could choose to set aside money for each month instead.

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

Our true expenses fluctuate from month to month, and for the most part, we can absorb small changes without going over budget. But in a month with a large irregular expense due, it can throw us off if we don't have the savings to cover it — and more than likely, we'll add to our debt instead.

Not planning for these costs each month will leave you with a surprise bill, or worse, put you into debt.

Most people don't 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. Those surprises created a lot of stress, and I ended up adding to my debt.

Like many people, I never learned how to plan or save for these expenses. Even though I knew I should have savings set aside, I never seemed to have money left at the end of the month to put anything away. And I had no idea how much these costs added up to annually.

Get Clear on Your Non-Monthly Expenses

The first step is to get clear and identify all of them. If you're good with spreadsheets, start there. Otherwise, create a list with three columns in your Notes app or on a piece of paper: the expense, the amount due, and the due date.

I've created a downloadable list of common non-monthly expenses for you to consider — feel free to add your own. It's a Google Sheets spreadsheet you can use as is, or as a template to build your own. You can download it here.

Create a Calendar to Avoid Surprises

Next, build on that clarity by creating a simple calendar for these expenses. You can use paper and pen, or set it up in any document or spreadsheet app. You can also use Sheet 2 ("CALENDAR") on the same downloadable Google Sheet above, or use it as a template to create your own.

Once you've completed both exercises, you'll have a clear, detailed list of all your irregular expenses, when they're due, a calendar to remind you, and a savings goal to make sure you're prepared.

Start Saving — Gradually

Even though this is technically "savings," I want you to think of it as a monthly expense. The amount may surprise or even overwhelm you if you've never considered saving for non-monthly costs before.

It overwhelmed me. It woke me up to the reality that I was living way beyond my means — by $1,000 a month.

So how do you start saving $1,000 a month when you have no money left at the end of each month? Gradually. It's a choice that will transform your financial life.

For me, it meant setting an intention to take care of myself and be a better steward of my money. For you, it may mean starting slow and building toward your savings goal. It may mean earning more. It may mean spending less on wants, or things you don't truly value.

Do what you can with what you have. Begin saving something each month, even if it's $25 a week or $50 a paycheck. Each time you receive a financial gift, bonus, or raise, increase your savings. Over time, your efforts will be rewarded, and you'll no longer feel the pinch.

Automating your savings — and setting aside 1/12 of what you need — will become a positive habit that supports you in consistently taking care of yourself financially.

Why This Is a Game-Changer

Pulling money from savings feels so much better than going into debt. Knowing you planned ahead and set aside money for your needs and wants is empowering. Setting intentions and following through is self-honoring — and nothing feels better than that.

If you're already saving for these expenses, well done! Feel free to use the list and calendar to check that you're on the right track, and revisit your non-monthly needs and wants each year to update it as needed.

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

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

Do your future self a favor, and take the first step.