How can I plan for irregular expenses such as car registration?

Question

Plan for irregular expenses like car registration by setting up dedicated sinking funds. Divide total annual costs into equal monthly savings set aside in a separate account.

Evangeline Whitmore · Answer

List all recurring annual or periodic obligations, total their costs, and divide by twelve to calculate a monthly savings target. Set up an automated transfer into a dedicated sub-account or sinking fund, ensuring funds are available when bills fall due without disrupting your primary everyday budget.

How can I plan for irregular expenses such as car registration?

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