BET Lesson 9 of 11 · 4 min read
Saving for goals and once-a-year costs
Turn big or yearly expenses into small monthly amounts, and let automatic transfers do the work.
Divide yearly costs by 12
Write down every expense you don’t pay monthly, with its yearly cost. Add them up and divide by 12. That’s how much to set aside each month, so the money is already there when the bill arrives. Some people call this a sinking fund.
| Car insurance | $900 |
| Holiday gifts | $600 |
| Car registration | $120 |
| Yearly subscriptions | $120 |
| Total per year | $1,740 |
| Set aside each month ($1,740 ÷ 12) | $145 |
Make it automatic
- Set up automatic transfers into savings on a set schedule, such as every payday.
- Or ask your employer to direct-deposit part of each paycheck straight into savings.
Money you never see in your checking account is much easier not to spend.
Start small
One of the best ways to reach a financial goal is to start small. Pick one goal, give it a dollar amount and a date, and work out the monthly amount. When saving becomes a habit, add the next goal.
| Goal | $1,200 in 12 months |
| Save each month | $100 |
| Or each week | about $23 |
Remember
- Add up yearly costs and divide by 12 to set aside a little every month.
- Automatic transfers make saving effortless.
- Start with one goal with an amount and a date.
Add a monthly set-aside
In BET, create a recurring monthly entry for your yearly costs, such as “Set aside for car insurance”.
Sign in with Google to try itSources and further reading
- How Do I Budget for Non-Monthly Expenses (Utah State University Extension)
- Building your savings? Start with small goals (Consumer Financial Protection Bureau)
- Start saving today with our new savings booklet (Consumer Financial Protection Bureau)
- Saving for the Unexpected and Your Future (FDIC)
- Starting Small Can Lead to Big Savings (FDIC)