S1 E9: 😲 The one thing you're forgetting [Out of the blue expenses]

In this episode of the Money Healing Club podcast, host Rachel Duncan, a financial and art therapist, talks about an often-overlooked type of fixed expense that just might be causing your debt spiral: annual expenses. Building on the previous episode's focus on subscriptions, Rachel explores the concept of 'midterm' expenses.

Estimate costs on all these things that usually sneak up on you:

*Car registration

*Car maintenance and repairs

*Parking/traffic tickets

*Pet emergencies

*Home repairs

*Hobby-related costs

*Travel

*Furniture

*Moving

*Tax preparer

*Seasonal recreation: Parks pass, kids camps, classes

*Medical and dental deductible

*non-monthly utilities

Dedicate a midterm savings account for these costs that is separate from an emergency fun and other long/term accounts. Name this account something meaningful: Out-of-the blue costs, annual fun, no surprises fund... whatever is meaningful for you.

Add them up and divide by 12. Set an auto transfer of this amount from checking to this special savings. Now you have a list of the inevitable, but surprising costs you're saving for!

This episode provides practical steps for calculating and setting aside funds regularly to avoid falling into a debt cycle. Rachel also highlights the importance of balancing necessary costs with quality-of-life expenses to create a realistic financial plan.

00:00 Introduction to the Money Healing Club

00:37 Understanding Annual Fixed Expenses

01:33 Examples of Midterm Expenses

03:20 Creating a Midterm Savings Account

03:47 Comprehensive List of Annual Expenses

06:59 Budgeting for Quality of Life

08:35 Conclusion and Next Steps

Your next listen: S1 E8: Subscriptions: too easy to ignore https://www.moneyhealingclub.com/podcast/s1e7-2yr7d

Leave us a voicemail: What cost feels out of the blue for you and throws you off? Click on the big orange button on our site right from your phone or browser and let me know! https://www.moneyhealingclub.com/podcast

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Full transcript can be found here: https://www.moneyhealingclub.com/podcast