Embrace Your True Expenses

What is a True Expense?

True Expenses are your large, less-frequent expenses. For some, you'll know the amount and due date—like your auto registration or annual insurance premiums. Others aren't as concrete. You may not know exactly when you'll need to replace your tires, but you know the time will come, so you can plan ahead. 

Some of the money you have now needs to be set aside for these large expenses down the road—break them into manageable  monthly expenses and budget for them.

How to Embrace Your True Expenses

  1. Consider what large, less-frequent expenses are coming up, and your best guess as to when they'll hit and how much they'll cost.
  2. Set a Target and YNAB will help you determine how much you need to assign each month in order to be ready. No stress (or credit cards!) necessary.

Here are just a few True Expenses to consider when setting up your budget:

  • Taxes
  • Annual Subscriptions/Memberships (Amazon Prime, iCloud, Costco, Roadside Emergency Services)
  • HOA fees
  • Car Registration and License Renewal
  • Professional Dues
  • Yard Care (including Pool and Lawn care, and Snow Removal)
  • Day Care/Summer Camp
  • Vet Bills

Imagine a big bill coming in and… you just pay it. When the holidays roll around, there's no need to get out your credit card—you're ready! It’s not magic, it's Rule Two of the YNAB Method!

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