Saving money is one of the most commonly discussed topics and you have probably been told a thousand ways to do it. Now that you have set up a savings account the question becomes “How much exactly should I be saving?”. This is where the lines get a bit blurred as answers range from “half of every paycheck” to “$100 a week”. To help you figure out how to properly save for your future we have set up a series of blog posts detailing how to save daily, weekly, monthly, yearly, and over your lifetime.
After reviewing you daily, weekly, and monthly savings goals you may find that you have saved up more than expected. Before you go on a spending spree you should take into account some of the annual expenses which sneak up on you. Below we have included a list of 6 items you may have to pay for annually.
Car expenses: Whether it be registration fees, annual maintenance, replacement parts, or even seasonal expenses (Winter Tires, antifreeze, coolant, etc.).
Insurance Premiums: One of the most dreaded annual expenses are Insurance Premiums. If you have auto-pay set up with your insurance provider, you may not even realize how much you pay until you check your bank account.
Gifts: Whether it is a wedding, birthday, or anniversary it pays off to identify the costs of purchasing gifts when setting up an annual budget.
Doctors’ visits: It is good practice to have annual check-ups with your doctor or dentist. Even if you already pay for insurance you may have to include a co-pay payment. Also, don’t forget to include trips to the vet if you own a pet!
Membership fees/subscriptions: These fees can range from a AAA membership to Union Dues, just don’t forget about how many of these you accumulate, it may add up to more than you can afford.
Yearly traditions: This one is a bit more dependent on the person. It includes annual expenses including family gathering expenses (airfare, gifts, etc.) to buying holiday themed materials (Easter, Cinco de Mayo, Thanksgiving, Christmas).
Although identifying these annual expenses may be challenging upfront you are able to reuse the same budget every year with only minor adjustments. The key to motivating yourself to complete the annual budget is knowing at the end you will be able to rest easy knowing exactly how much you need to put aside and not be surprised by random charges you have not accounted for.
Join us on our next ‘Savings for the Future’ series post for the conclusion of the Blog Series as we identify how much you need to have saved at certain points throughout your life.