Photo Credit: stratospherenetworks.com
Plan Ahead
How many of us have bills that only happen once a year or every six months? You don't have to let these bills sneak up on you. You can plan ahead.
For example, do you have a vehicle that has an annual registration due? How do you prepare for these? Do you forget all about them until the notice comes in the mail and then fret about where you will find the money? Do you put it on your credit card and add insult to injury by paying 2.5% fee for the "convenience"?
We have 2 vehicles to plan for. And they come at different times of the year. In order to prepare for these in advance (because they really are not a surprise, I know they are coming), I take last year's registration amount and divide by 12 and then set that amount aside in a savings account. And I don't touch it for any other reason than to pay the registration due. If I start setting this aside the first month after I paid the last registration amount, then it's available when I need it for next year. And it's easier to come up with $25 a month than $300 (plus $7.50 for that fee) when it's due, right?
You can apply this principle to auto or home insurance, property taxes and any other bill is not due monthly.
This is one way to stay Free from debt and Free from worry about where to find that money all at once.
You can master your money... and I can help!
Contact Michelle Serna by filling out the Contact Me form.
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