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Schedule of Non-Monthly Family Living Expenses
MontGuide
MT198910HR Revised 2/17
by Marsha A. Goetting, Ph.D., CFP®, CFCS, Family Economics Specialist, and Keri Hayes, MSU Extension Publications Assistant
Your monthly budget may seem lower than it really is if you forget to include annual or periodical expenses such as insurance, property taxes, or holiday gifts. This MontGuide includes instructions and a worksheet for establishing the true monthly cost of your familyâ??s living expenses.
IF YOU HAVE A SYSTEM FOR TRACKING YOUR
family living expenses on a yearly basis you know where your money goes. If, however, you have tracked your expenses for only a certain time period, such as two or three months, you may have forgotten about major non-monthly bills you pay during the year that did not come due during your tracking period. Examples of non-monthly bills include: property taxes, car and life insurance premiums, car license plates, vacations and holiday gifts.
You may think your monthly living expenses are lower than they actually are. One family, for example, thought their monthly living expenses were around $2,500 and developed their spending plan accordingly. They also established financial goals for the education of their children as well as their own retirement, and planned for a family vacation, all based on the $2,500 figure. In reality, when non-monthly expenses were included, they were amazed to discover their actual monthly living expenditures were closer to $3,120 â?? a difference of $620.
A financial planning tool, Schedule of Non-monthly Living Expenses, can help you determine the amount to allow for non-monthly expenses has been included in this MontGuide for your use. This form gives you a clear
picture of how your non-monthly payments are distributed throughout a 12-month period. At a glance you can see when major bills are due and plan for them. The form will help you calculate how much to set aside monthly to avoid the stressful feeling that often results when several major bills come due at the same time and you donâ??t have the funds set aside to pay for them.
A sample form and directions for filling it out follow. Use the blank form on page 3 to list your non-monthly expenses. After you have completed the form, keep it
in an easily accessible place. An online version of the form is available: www.montana.edu/extensionecon/ familyeconomics/financialmgtpublications.html.
At the end of the year you may find adjustments are needed for certain amounts such as gifts or vacations. Adjust accordingly and make a new yearâ??s resolution to make
your Schedule of Non-Monthly Family Living Expenses as accurate as possible.
How To Fill Out Your Schedule of Non- Monthly Expenses Form
List descriptions of non-monthly expenses that are due during the year in the Item column (first column,
left side).
The family in the example anticipates expenses for holidays/birthdays, school supplies, car license plates, car servicing and tires, as well as car and life insurance, club memberships, newspapers, magazines, property taxes, and vacations.
Record non-monthly family living expense amounts in the space provided under the appropriate month. If you donâ??t know the due dates, refer to previous yearâ??s returned checks or other credit card receipts.
This family expects to spend $250 for holidays and birthdays in April, $150 in August, and $350 in December; $650 for life insurance in October, car insurance of $410 in February and October, and so on.
Total the amount to be spent for each non-monthly expense item horizontally (across) and place in the Yearly Cost column. In the example, this family expects to pay
$1,400 in property taxes in May and another $1,400 in November for a total of $2,800. This is written in the Yearly Cost column on the Property Taxes line.
Total the non-monthly family living expense amounts vertically (up and down) by month.
For example, in January $330 is due to license the car. Since there are no other non-monthly expenses in
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January, $330 is written on the bottom line beside the
Total Amount column. In February, $800 is required for membership dues and $410 for car insurance. The total ($1,210) is written on the Total Amount line for February.
To determine total yearly cost of non-monthly expenses, add figures in the Yearly Cost column.
This family adds figures of $750, $250, $330, $620, and so on in the yearly cost column for a total cost of non- monthly family living expenses of $9,256.
Add the bottom line total amounts by month (January through December).
This family adds $330 in January, $1,210 in February,
$140 in March, $250 in April and so on for a yearly total of $9,250 non-monthly expenses.
The grand total of the Yearly Cost column and total amounts by month line should be identical. If theyâ??re not, perhaps you have made an error in addition. Recheck your figures in each column and line. Once they agree, go to Step 8.
Divide the yearly cost of each non-monthly item total by 12 to determine the average monthly cost.
This family anticipates paying $330 for car license plates in January. The average monthly cost is $27.50. This family plans to spend a total of $2,000 for vacations for an average of $166.67 per month, and so on.
Total the Average Monthly Amount column. This total should equal the amount of the yearly cost total divided by 12. If the two figures donâ??t agree, possibly you have made an error. Recheck your figures horizontally and vertically.
In the example, the total of the Average Monthly Amount column ($62.50) for holidays, $20.83 for school supplies, $27.50 for car licensing and so on equals
$771.73. The result of dividing the total in the Yearly Cost column ($9,256) by 12 equals $771.33.
Add the total of your Average Monthly Amount column to the expenses you tracked for the period of time. This will give you a more realistic idea of the average monthly living expenses for your chosen lifestyle.
Ideally, you should set aside monthly the average of your non-monthly expenses ($771.33 in the example) in a separate checking or savings account. If you do, you should be able to promptly pay all your monthly bills and avoid the feeling of financial stress when the bill is due.
Schedule of Non-Monthly Expenses Sample
Item
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Yearly cost
Average monthly amount
Holidays/Birthdays
$250
$150
$350
$750
$62.50
School-books, supplies
$250
$250
$20.83
Car license plates
$330
$330
$27.50
Car servicing/tires
$55
$55
$55
$400
$55
$620
$51.67
Union dues/
club memberships
$800
$50
$850
$70.83
Car insurance
$410
$410
$820
$68.33
Life insurance
$650
$650
$54.17
Newspaper/magazines
$85
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