Table of Contents
Introduction
Yearly expenses have a way of sneaking up and throwing off your budget. Car registration, HOA fees, credit card annual fees—these predictable costs often get overlooked until they’re due, leaving you scrambling for cash and potentially throwing off your budget for that particular month.
The best way to stay ahead is to break these expenses into smaller monthly expenses in your budget. tMoney makes this easy by automatically calculating how much you need to set aside each month, so when the bill arrives, the money is already there. Pair this with SoFi Vaults to keep your savings organized, and you’ll never be caught off guard again.
Why Yearly Expenses Throw Off Your Budget
Most people budget month to month, focusing on rent, utilities, groceries, and other regular expenses. But what about the costs that don’t come every month? Yearly expenses can feel like surprise bills, even though they happen on a predictable schedule. When these expenses aren’t accounted for, they can force you to dip into savings, cut back on other spending, or rely on a credit card just to cover the cost.
Yearly Expenses: Recurring Bills That Catch You Off Guard
Yearly expenses are fixed, unavoidable costs that come up once a year. They aren’t unexpected, but they often get overlooked when planning a monthly budget. Instead of treating them like one-time surprises, they should be included in your financial planning just like your regular bills.
To help make sure these expenses are top of mind, the tMoney budgeting app list some of the most common yearly expenses so that you can add them to your budget. Common yearly expenses include:
- Car registration
- Shopping memberships (Amazon Prime, Costco, etc.)
- Credit card annual fees
- Software subscriptions
Because these expenses happen infrequently, it’s easy to forget about them—until they’re due. That’s when they become a financial burden instead of just another routine expense.
Yearly Goals: Big Savings That Need a Plan
Yearly goals aren’t required bills, but they’re just as important for financial planning. Instead of waiting until the last minute to save, breaking them down into smaller monthly contributions makes them easier to reach.
Examples of yearly goals include:
- Back-to-School shopping
- Christmas and birthday gifts
- Saving for annual vacations
- Maxing out a Roth IRA contributions
Unlike yearly expenses, yearly goals are more flexible. You can adjust your savings target based on your financial situation, but having a plan ensures you stay on track.
The Solution: Use tMoney to Budget for Yearly Expenses
Instead of scrambling to cover a large expense when it’s due, the best approach is to set aside a small amount each month. When the bill arrives or your savings goal deadline comes up, the money is already there.
tMoney simplifies this process by automatically calculating how much you need to save each month for both yearly expenses and yearly goals. By integrating this into your budget, you can eliminate financial stress and make sure these costs never catch you off guard.
1. Go to the Yearly Budget Items in tMoney
tMoney has a dedicated section for adding yearly costs. Open tMoney, scroll down to the Budget Items, then switch to the Yearly tab. You can select from the pre-populated list of common yearly expenses, or scroll to the bottom of the list and tap Add Yearly Expense to create your own. Whether you’re planning for an annual expense or saving toward a yearly goal, this feature helps ensure you’re prepared.
2. Enter the Yearly Cost for Your Current and Future Budget
As previously discussed, tMoney helps you plan for both your current budget as well as your budget in your future home. When entering the amount for your yearly expense:
- Add the total yearly amount in the Cost (before Home) field.
- If the amount is expected to change when you move, enter the new yearly amount in the Cost (after Home) field. If not, enter the same amount in both fields.
- Tap the Recalculate button and follow the prompt to let the app convert the yearly expense into a monthly amount. This ensures you’re proactively setting aside just the right amount each month in preparation for this expense once the due date arrives.
- Continue adding the rest of the details for this expense, including Expense Categorization, Payment Method, and other relevant data.
3. Choose Where to Save It (SoFi Vaults)
Since you can only have up to 20 vaults in your free SoFi Money savings account, it’s recommended to use one dedicated SoFi Vault that holds all of the funds for your Yearly Expenses, like car registration and subscription fees.
In contrast, Yearly Goals should each have their own individual SoFi Vaults to add target amounts to save for each goal and maintain separation.
4. Automate Your Savings
Once tMoney has calculated your monthly savings amounts, set up an automatic transfer to move the money into the right vault. This way, you don’t have to think about it each month and your savings will grow effortlessly.
Using tMoney to plan for yearly expenses and goals helps you avoid financial surprises and stay in control of your budget. With everything calculated and automated, you’ll always be prepared when these costs come up.
Conclusion
Yearly expenses don’t have to feel like surprise bills, and saving for big financial goals doesn’t have to be overwhelming. By breaking these costs into manageable monthly amounts, you can stay ahead of both fixed yearly expenses and yearly goals without disrupting your monthly budget.
tMoney eliminates the mental math to make this process effortless, ensuring that when the bill arrives, the money is already there. Pairing this with SoFi Vaults keeps your savings organized and easily accessible, so you never have to scramble to cover a yearly cost again.
Start taking control of your finances today. Download the tMoney budgeting app, enter your yearly expenses and goals, and let the app handle the rest. With the right system in place, you can avoid financial stress and stay ahead of your budget—year after year.