What's a good strategy for setting aside money for annual big-ticket expenses? Talking like homeowner's insurance and property tax.
>>34779220Have more than one bank account, with different functions.
>>34779220Break up the expense by month and set aside a little bit more than you need each month
>recurringly paying a tax>in order to perpetually occupy a space>that you only paid for one timeThe most bitch of taxation.
>>34779220The two examples you give almost certainly have pay-monthly options, and your bank almost certainly has a "direct debit" or "bill-pay" option, so you can arrange to have the insurance or tax money automatically taken out of your account each month, bypassing your involvement. Just make sure there's enough in the account each month.
>>34779220A good way to think about it is not "how much should I set aside" but rather "how much am I able to save while still being reasonable". Saving is like a muscle, it takes practice to get good at it. People always screech about how buying an ice coffee every day is NOT the reason they are poor. And they are right. But its a poor-person-habit, likely one of many, and once you start breaking those habits you can start saving meaningful amounts.
