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.

Thanks!

-claire 

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  • I would make it a monthly funding goal of $20.97 /3 + $14.99/12. You never have to worry about resetting the goal, and you'll be ready for all of the upcoming payments. (You'll need to prefund some extra for the February and March payments now, but only this once.)

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      • Gray Rain
      • Gray_Rain.5
      • 6 mths ago
      • Reported - view

      mamster i get it! thanks. 

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  • $8.24/month. You'll end up with an extra penny once a year. Depending on timing of your next charges, you'll need to pre-fund to catch up so it's all there.

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      • Gray Rain
      • Gray_Rain.5
      • 6 mths ago
      • Reported - view

      nolesrule ah, i see, thanks!!

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  • 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 Like 3
      • Gray Rain
      • Gray_Rain.5
      • 6 mths ago
      • Reported - view

      dakinemaui i get it, thanks! this makes sense.

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