{"id":934,"date":"2023-01-01T12:00:04","date_gmt":"2023-01-01T12:00:04","guid":{"rendered":"https:\/\/moneywithkatie.com\/?p=934"},"modified":"2025-09-04T20:24:41","modified_gmt":"2025-09-04T20:24:41","slug":"2025-wealth-planner-faq-planning-for-annual-expenses","status":"publish","type":"post","link":"https:\/\/moneywithkatie.com\/2025-wealth-planner-faq-planning-for-annual-expenses\/","title":{"rendered":"Planning for Large Expenses that Happen Irregularly"},"content":{"rendered":"
\n

If you\u2019d like to save a little each month to plan for a large expense<\/em> that happens once or twice a year, try this method.<\/h3>\n<\/div>\n

\"\"\/<\/p>\n

\n

Planning for the Expense<\/strong><\/h3>\n
    \n
  1. \n

    Determine the overall amount<\/strong> that you\u2019d like to save each month for the expense. For example, if it\u2019s a $1,000 car insurance bill every six months, your goal would be $166\/month<\/strong>.<\/p>\n<\/li>\n

  2. \n

    Go to the Checking & Savings<\/strong> section of the Load Your Accounts, Assets, Liabilities, and Goals<\/strong> table.<\/p>\n<\/li>\n

  3. \n

    Select the account you\u2019d like to use from a dropdown. For example, if you\u2019re using a high-yield savings account, select High-Yield Savings from your dropdown.<\/p>\n<\/li>\n

  4. \n

    Give it a name or description in the \u201cInstitution\/Description\u201d field.<\/p>\n<\/li>\n

  5. \n

    In the Timeline column, choose \u201cSinking Fund (Spending Soon).\u201d Enter the balance currently in the account.<\/p>\n<\/li>\n

  6. \n

    Check the \u201cActively Contributing?\u201d box to let the Planner know you plan to make contributions to this account.<\/p>\n<\/li>\n

  7. \n

    For the Monthly Contribution Goal, enter the goal. In this example, it\u2019s $166.<\/p>\n<\/li>\n<\/ol>\n<\/div>\n

    \n

    \"\"\/<\/p>\n

    \n

    Using the Money When It\u2019s Time<\/strong><\/h3>\n

    When it\u2019s time to use the money, you\u2019ll head to the Irregular Expenses<\/strong> box in your monthly tab, enter the description, amount, and select your sinking fund from the dropdown menu. <\/p>\n

    The purchase will automatically be \u201cincluded\u201d in your budget, but if you\u2019d like to exclude<\/strong> the purchase from your spending total, you can check the box to exclude it. <\/p>\n

    This is only for the purposes of tracking your spending; the money will not be automatically removed from the account in the Net Worth tab. The expense will be reflected in the Net Worth tab when you do your next update and input the lower balance.<\/em><\/p>\n<\/div>\n

    \n
    \n

    \u201cI\u2019m saving for multiple goals in one savings account!\u201d<\/strong><\/h3>\n

    No problem\u2014just add up the total monthly contribution goals, and enter one number in the \u201cMonthly Contribution Goal\u201d column.<\/p>\n<\/div>\n

    \n