If you get paid twice a month on the 15th and 31st or paid every other week, the amount per pay is $1,250 ($2,500/2). Now we need to calculate your recurring and periodic expenses per paycheck. Source: Financial Dadvisor 15-Second Spending PlanĬlick the image or link above to get your free copy of my Google Sheet 9. Your New Monthly Budget For Recurring and Periodic Expensesīased on the table below, the monthly budget amount to cover your family’s recurring and periodic expenses is $5,000. How I reconcile my recurring expenses accountĨ.How my cash flow system began over 20 years ago.Source: Financial Dadvisor 15-Second Spending Plan Exclude your mortgage payment as we included that above as a monthly recurring expense. These payments are typically car loans/leases, student loans, home equity loans, and credit card payments. Recurring expenses also include your monthly debt payments. Make a List of Your Debt Payments, Excluding Your Mortgage Source: Financial Dadvisor 15-Second Spending PlanĬlick the image or link above to get your free copy of my Google Sheet 7. So the monthly blended amount is $200 each month. The estimated annual cost below for electricity is $2,400. To make the budgeting process easier, estimate the yearly cost for each utility, and divide that amount by 12. So electric costs would be higher in the summer, and natural gas higher in the winter months. Utility bill payment amounts vary month to month, such as electric, heating, and water bills. fixed as you do have control over the ‘fixed’ amount you pay each month. This is why I prefer the term recurring vs.
Are you in the habit of paying the “fixed” amount month after month? How can you reduce any of them? Call your cable company, cell phone provider, or insurance company and try to lower them. You should now have a complete list of all your monthly recurring and periodic expenses. Source: Financial Dadvisor 15-Second Spending PlanĬlick the image or link above to get your free copy of my Google Sheet 5. These are bills like mortgage/rent, utilities, and car payments. Write Down All Of Your Monthly Recurring Expenses This way you can pocket the $60 a year in monthly payment fees they would love to charge you. So keep your money in the bank and make 2 payments a year vs. The car insurance company would be happy to set up a monthly payment plan and charge you a $5.00 fee for doing so. So for car insurance, your monthly amount is $167 ($1000/6 months). For example, car Insurance is due every 6 months. Source: Financial Dadvisor 15-Second Spending PlanĬlick the image or link above to get your free copy of my Google SheetĪs explained above, your periodic expenses are constant but are not paid monthly.