Do you ever have days (or weeks or months) when it seems like the demands (whether they be professional, financial or personal) never ends? We’re having one of those months on the financial front.
December in California means property taxes are due. We don’t have an escrow account with our mortgage so I have a sinking fund for this expense where I deposit 1/12th of the annual amount each month.
I use the same strategy for Christmas expenses so we’re covered in terms of gifts, tips and entertainment. I’ve kept to the holiday budget this year so we’re good so far. But planning only gets you so far.
We’ve been dealing with a dying washing machine for a couple of months and jumped on a good pre-Thanksgiving sale. The new washer was delivered last Tuesday and works great. We’re already saving money because the clothes are spun much drier requiring less time in the dryer!
Speaking of the dryer that’s the next surprise. Our 3-year-old dryer started making a horrific sound two days later. There’s a big difference between replacing a washer with a bad agitator that’s over 10 years old and this situation.
Mr. Boomer isn’t an appliance repair person but he took a look at it and thinks it’s the bearings. Someone’s coming over tomorrow that IS a repair person and we’ll find out if it’s fixable at a reasonable price.
These are large expenses but my real-life expenses illustrate the importance of planning. In past years, I wouldn’t have had cash readily available to cover it.
Realistic budgets will include emergency and sinking funds. We’re taking advantage of both of these to get us through these numerous expenses this month.
What about you? Do you have a repair fund and how do you handle expected irregular bills?
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