Plan for irregular bills with savings pots

Many budgets work well until a large yearly bill arrives. Planning for irregular costs, sometimes called sinking funds, spreads them across the year so they stop causing stress or new borrowing. This guide shows you how to find these costs, work out monthly amounts and set up a simple system.

Step by step

1. Find every irregular cost

   Look back over a year of bank statements and list anything that does not come out monthly. Common examples include car insurance, MOT and servicing, TV licence, annual subscriptions, holidays, Christmas, birthdays and school costs. Add anything you know is coming, such as a boiler service.