The short answer
List predictable occasional costs, estimate when they are due and work out what you need to set aside over the time remaining. Include that amount in your budget before deciding what is available for other savings.
Make a twelve-month list
Review statements and your calendar for annual insurance, subscriptions, vehicle costs, school expenses, celebrations and other expected spending. Separate an estimate from a confirmed bill so you know which figures need checking.
MoneyHelper’s budget planner allows different time periods for costs, including yearly amounts. This helps you see a monthly average, but you still need to know when the actual bill falls due.
Use the remaining time, not always twelve months
An annual £300 expense averages £25 a month over a full year. If it is due in three months and you have nothing reserved, the same bill would require £100 a month over those three months. Both calculations describe the same cost with different starting positions.
Write the amount already set aside, the estimated remaining cost and the number of months until payment. These are arithmetic examples, not recommendations for what any particular household should save.
- Expected bill: £300.
- Already reserved: £60.
- Remaining cost: £240.
- Four months remaining: £60 per month.
Check whether the plan is affordable
Add the provision to your essential spending and other commitments. If it does not fit, revisit the cost, timing or wider budget rather than assuming the shortfall will disappear. You may need impartial guidance if you cannot cover essential bills.
Review estimates when you receive new information. A separate pot or a simple record can help you see the money’s purpose, but it does not create additional money or guarantee that a future bill will match your estimate.
ONE SMALL ACTION
Try this today.
Choose one occasional bill and write its estimated cost, due date, amount already reserved and monthly provision over the remaining time.
Add a task to my daily focusCommon questions
Do I need a budgeting app?
No. A written list or spreadsheet can work. Choose a tool you can keep accurate.
Is this the same as emergency savings?
No. A known annual bill is a planned expense. An unexpected cost is a different budgeting need.
General budgeting information, not personal financial advice. Seek impartial money guidance if essential costs or debt repayments are difficult to meet.
Sources and further reading
These sources support the information identified in the guide. The exercises and examples are suggestions from It Is My Year.
Links checked 4 October 2026.
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