How to handle Property Taxes - paid twice a year
Our local Property Taxes are paid twice a year - June 1st and September 1st -
We pay about $8,000 - paid in two $4,000 installments.
Trying to decide if I should just use one goal for the $8,000 total,
or setup TWO separate goals, each for the $4,000 paid in June and Sept ?
Coin toss ?
Hi ps56k !
Where are you as far as saving up for the payment in June? Since that one's coming up fairly soon, I'd use a Target Category Balance by Date just to make sure you have enough once it's due.
A monthly funding goal would be tricky if you wanted to use one category for both - you'd have to make sure that you budget enough each month to have $4,000 by June, then enough to make it back to $4,000 by September. If you budgeted $670 each month from October-June you'd have $6,030 saved. After making the $4,000 payment, you'd have $2,030 left. Budgeting another $670 in July, August and September would bring you back up to $4040 in time to pay September's installment.
You can make the different goal options work, it just comes down to which one you prefer seeing and working with in your budget! :)
I have something very similar to this - two large equal payments in February and May...however you do it the first time, after the second payment you can divide into 12 equal payments to simplify next year. Don't overthink it then...if you budget $8000 / 12 each month beginning in October, you'll be good to go next year. You may be more comfortable with some rounding on the result of that math but that's up to you
I'm more about the guy who overthinks such things, so I split the payment goals per month. Quite more complicated yet to me it seems like a nice move in order to organize savings and taxes, as well as to keep the forms and other records backed up such like w9 forms and else. Nonetheless, setting up just one goal doesn't seem like a bad idea