Budgeting for Unevenly Spaced Bill Payments
Hi! I'm wondering if you have strategies for budgeting for bills that aren't monthly.
I pay a web hosting service that bills quarterly ($20.97 every 3 months, Feb., May, August, Nov.)
It also charges me a one-time fee, $14.99, once / year in March.
Do you recommend budgeting $20.97 one time Feb., and then making a goal for May?
Or, one time Feb., and then just going into my May budget and dropping in $20.97?
And what about the one-time fee?
I'm thinking that the answers will be preferences rather than "correct," but I'm just curious what people think is easier before I try one method or the other.
Long-term you'd simply budget $8.24/mo. In the short term, you have to get through May, as that's the date of maximum drawdown. The category should go to $0 after May's payment.
The required short-term contributions depend on how much you currently have available, but I'll assume that $0 being carried over from Jan.
As a one-time catch-up in Feb, you would budget $32.21 (then $8.24 thereafter). Make a monthly goal for $8.24 if you need help entering numbers each month.
If you're looking to avoid "front-loading", then budget $20.97 (Feb), 14.99 (Mar), $10.98 (Apr & May), then $8.24 (thereafter).Reply