Saving for Non-Monthly Expenses is a Game Changer!

Saving for non-monthly expenses will transform your financial life.

It is truly a game-changer! And, if you are in debt, it will help you break the cycle of using credit cards to pay for annual expenses that you could choose to set aside money for each month instead.

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 our 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. And, more than likely, we’ll add to our debt instead.

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 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 that you can use as is or choose to use it as a template and create your own. You can download it here.

Create a calendar to remind you of upcoming non-monthly expenses so you can avoid “surprises.”

Add to your new found clarity by creating a simple non-monthly expenses calendar.

You can use paper and pen or create your calendar in any document or spreadsheet app. You can also utilize Sheet 2 “CALENDAR” on the same downloadable Google Sheet above, or use it as a template to create your own.

Once complete with the two exercises above, you’ll have a clear, detailed listing of all your non-monthly expenses, when they are due, a calendar to remind you, 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?

Gradually!

It’s a choice that will transform your financial life.

For me, I set an intention 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.

Begin saving something each month, even if it’s $25/week or $50/paycheck. Each time you receive a financial gift, bonus, or raise, increase your savings. Over time your efforts will be rewarded and you will 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.

Having money in the bank when you need it - is a game changer!

Pulling money out of savings feels so much better than going into debt. Knowing that you were able to plan for and set aside money for your non-monthly needs and wants is empowering. Setting intentions and following through is self-honoring. And nothing feels better than that.

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

Feel free to use the non-monthly expenses list and calendar to help you clarify if you’re on the right track. Revisit your non-monthly needs and wants each year and modify 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 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. Do your future self a favor and take the first step.