How to budget monthly for annual costs and DMP inclusion?

DotNetter

Hi all

I'm curious about a DMP via PayPlan or CCCS.

My current budget isn't allowing anything for the annual cost of running a car (insurance, MOT, Servicing) or for the annual cost of clothing my family for example.

When and if I call PayPlan and go through a budget, will they expect me to tell them how much I need to save to cover these annual costs or will they ignore these as the money isn't actually being spent each month?

My current problem is that I've built up debt by never saving for a rainy day and always paying for the above things on borrowed money (same goes for birthdays and christmas present etc).

I've only recently made a list of the kind of annual expenditure I have and including christmas, birthdays, cars and holidays it comes to 3.5k (with almost 2k of that being the running costs of 2 cars)

How does everyone else budget for these annual costs and how will a DMP include these?

Cheers


Wayne

CLAPTON

you've answered your own question.

obviously you must budget for annual costs including an emergency fund by working out annual/one off costs and dividing by 12 and adding them to your monthly budget.
in the months you dont incur these costs you SAVE the money so its there when you need it