No. of Recommendations: 0
12 month averages can help, somewhat, but on another set of forums, we're fond of saying, "There's no such thing as a 'normal' month."

Every month is different. There will always be some expenses that vary (sometimes wildly). There will always be an emergency or an expense you forgot or a school fundraiser or a blown tire.

A 12 month average is a good starting place, but it's just a starting place. It doesn't help to know that you need $112.34 each month to pay your 6 month insurance bill if it's due next month and you haven't already been setting that aside. It doesn't help that much to know that last year you averaged $34.16 for car repairs if you need $625 right now to fix something.


Probably a silly question, but just wanted clarification. So if you allocate $50/month for car repairs but don't use it that month, what do you do with that $50. Does it sit in your checking account or do you set it aside in a savings account? And do you have subcategories in your savings account? Or does house maintenance, car maintenance, annual insurance premiums, vacation fund, etc. all get thrown together in one account? And what happens if you have a surplus? Does it roll-over into the next year, go into more permanent savings, or what?
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.