- Yearly expenses can creep up on you and harm your financial plan.
- It's essential to plan for monthly and yearly expenses.
- Insurance premiums, membership dues, and property taxes are some annual expenses you want to budget for throughout the year.
When you forget about a costly annual bill, it can cause financial stress.
Many people follow a budget to keep their finances in order and keep track of their spending. While some expenses occur monthly, like utilities, car payments, and mortgage or rent, planning for annual expenses is also essential. If you don't, you may not have enough money left in your bank account to cover all your bills. Don't forget to budget and plan for the following eight expenses.
1. Insurance premiums
You may be able to get a discount for paying your insurance policy premiums on an annual basis. This can be a great way to save some money, but it requires good planning -- especially if you have several insurance policies.
2. Tax preparation fees
Many taxpayers pay for tax preparation and filing services. If your income falls within a specific limit or you have a straightforward return, you may qualify for free tax filing.
But if not, you may need to pay to file your tax return. If you use a tax preparation service, tax software, or plan to pay tax-filing fees, don't forget to plan before April rolls around.
We all look forward to vacations, but it can cost a lot of money to take a trip. If you like to take a yearly trip, it's good practice to start a vacation savings fund to prepare for the costs before it comes time to jet off.
Otherwise, you may have to shorten your trip or get creative to keep costs low. Outlining a vacation budget can help you keep your vacation spending under control.
4. Membership dues
If you're a member of any organizations, stores, or clubs, you likely pay yearly membership fees. It's easy to forget about membership dues throughout the year while you enjoy the membership perks, but the annual bill (or credit card charge) can sneak up on you.
5. Vehicle usage fees
It costs money to own and use your car. You'll pay money to purchase it and handle regular repairs and maintenance like oil changes and tires. But there are other fees you may pay to operate your vehicle.
Many states require car owners to pay yearly registration fees. You may also need to pay to have your vehicle inspected yearly or biennial. Several states also require drivers to pay property taxes on their cars.
These costs can add up -- especially if you're a multi-car household.
6. Yearly subscription fees
If you subscribe to products or services -- whether it's software, a streaming app, or a meal delivery kit program, you may have the option to pay an annual subscription fee. Many brands offer a discount for paying once a year instead of monthly, so doing this can save you money.
7. Vet checkup fees
If you have pets, you may forget to plan for routine medical needs and annual exams. Like humans, pets require regular care. If you don't plan for exam, treatment, and vaccine costs -- you may be stressed out when it comes time to pay the bill. I have two cats, and I put extra money aside each month for their yearly vet visits.
8. Property taxes
If you own your home outright or your property taxes aren't included in your monthly mortgage payment, you're responsible for making property tax payments. For many homeowners, that can be a huge bill.
Don't forget about yearly expenses
Do yourself a favor and make room in your budget for all living expenses. Most of us remember to plan for regular monthly costs, but we may forget about expenses that occur less frequently.
When you set up your budget, work out what yearly expenses you have, too. Budgeting apps may make it easier to plan out your spending.
We recommend opening a separate savings account to stash extra cash. If you save up for annual expenses, the money will be there when it comes time to make your yearly payment.
If you want to improve your money habits, check out these personal finance resources.
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