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New Account

February 7th, 2012 at 01:22 pm

We're finally (I think) at a position financially that we can set up a new account to save for non- monthly occuring expenses. Things like property taxes, heating fuel, garbage pick up, and even Christmas spending.

We've been scrambling each time most of these expenes occur to figure out how to pay for them. So, here are the annual totals:

Property taxes (summer and winter) - $540
Heating fuel (three fill ups per season) - $2,238
Garbage pick up (paid quarterly) - $200
Christmas - $700

All totaled - $3,678
Montly expense - $306.50

So, I'm going to start allocating that amount to a new savings account each month.

3 Responses to “New Account”

  1. snafu Says:
    1328622709

    Good on you for getting ahead of the on-going and intermittent bills. Can you squeeze a bit more to include an emergency fund for those nasty challenges life throws at us.

  2. creditcardfree Says:
    1328623526

    Oh, I'm so happy for you!! This will be life changing financially. I call mine a general escrow account and then have a home escrow account for taxes and homeowners insurance. I really could lump them all together, but we make a payment to one at the beginning of the month and a payment to the other at mid month.

    I have saved this way for nearly fifteen years...sometimes weekly, monthly or twice a month like we do now.

    Let us know how it works out!

  3. laura Says:
    1328625098


    You've fully embrace Mary Hunt's strategy presented in Debt-Proof Living. Should take the headache out of those extraneous (yet predictable) expenses.

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