Several routine expenses are paid only once or twice per year.  However, some of us fail to appropriately plan for these payments, and we sometimes panic, borrowing on credit cards to pay the amounts due.

Here's a suggestion---total the amount of the routine expenses paid once or twice per year.  These expenditures may include your property taxes, automobile tags, insurance on the house and car, life insurance, or tuition.

Divide the total amount by twelve to determine the monthly amount needed to cover the payments.  Use a separate savings account to receive an automatic deposit from your checking account for the monthly amount.  Withdraw money from the separate savings account only to cover the expenses.  You have established your own escrow account where you may actually receive interest income for your effort!

If we can help you with developing your plan, contact our office and ask to speak with one of our financial planners.