Hey there! Recording irregular payments can be a bit tricky, but no worries, I’ll show you the solution: always set these values with the month as the reference point. Here are a few examples to illustrate this conversion into monthly values:
- Once a year, the tax office deducts $124.32 – enter the monthly share of $10.36 (= 1/12 of the payment) in the appropriate category.
- Every six months, you have to pay $86.22 for insurance – add the monthly share of $14.37 (= 1/6 of the payment) in the ‘Insurance’ category.
- Daily, on your way to work, you grab a sandwich from the bakery for about $2.50 – record the monthly total in the ‘Nutrition’ category over $50.00 (= $2.50 * approx. 20 workdays).
- Once a week, you do your family shopping for about $80.00 – enter the monthly total in the ‘Nutrition’ category over $320.00 (= $80.00 * 4 weeks).
These monthly values of irregular expenses are crucial when it comes to automating your finances. I’ll explain how to ensure liquidity for these irregular payments there as well.