How to Plan for Seasonal Expenses

Big expenses don’t always show up randomly. Some costs pop up seasonally. Holidays hit every December, and back-to-school costs arrive like clockwork. Summer travel, annual subscriptions, and tax bills are other predictable costs that you are bound to encounter every year. 

Yet, many people still feel blindsided. Our guide on how to plan for seasonal expenses will help you prepare for costs that come up throughout the year. 

How to plan for seasonal expenses

Here’s how to plan for seasonal expenses so you can reduce stress and stay on track to achieve your financial goals. 

List your seasonal expenses

Start by mapping out your full year. Break your expenses into seasons or months and list everything that tends to come up. Here’s an example that can help you get started:

• January to April: Tax filing and possible tax payments 
• May to August: Vacations, summer camps, higher utility bills 
• August to September: Back-to-school shopping 
• October to December: Holidays, gifts, travel

You should also identify when you’ll be renewing your insurance or making annual subscription payments. If several of these expenses are due in the same month and you aren’t prepared, it can bust your budget. 

Estimate the cost of each expense 

Next, assign a realistic dollar amount to each item. Here are a few ways to estimate your cost:

• Look at last year’s bank statements
• Pull up your receipts or order history
• Come up with rough estimates if you’re unsure 

You aren’t going to be perfect with all of your estimates. That’s not the point. You want to give yourself a realistic savings goal and set aside enough cash to cover most or all of your seasonal expenses. 

Break the total into monthly savings

Now divide your annual seasonal expenses into monthly amounts. Let’s say you determine that you have $3,600 in annual expenses. In that scenario, you should set aside $300 per month into a seasonal expense fund. That way, you won’t be scrambling to come up with $800 in December for gifts or $600 to cover back-to-school expenses in August. 

Create a separate seasonal expenses fund

You don’t want to mix your seasonal expense fund with other savings accounts, such as your emergency fund. Instead, create a separate account so that you can easily see if you are on pace to hit your goal, or if you need to move some cash around to catch up. 

Automate your savings

If possible, set up automated transfers from your checking account to your savings account. When saving money for your seasonal expense fund becomes automatic, it’s much easier to stick to your plan. Schedule the transfers to occur each payday or at a time in the month where you know you’ll have some extra cash available. 

Adjust as the year goes on

You won’t be able to predict your expenses to the dollar. For example, your summer electric bills could be higher than you originally anticipated, which could throw off your seasonal savings plan. If that happens, revisit your budget and determine how much extra you need to put away to catch up. To create extra room in your budget, you may need to eliminate unnecessary spending elsewhere temporarily. 

What counts as a seasonal expense?

Here are some common bills or financial obligations that count as seasonal expenses. 

Holidays and gifts

The holiday season is a predictable annual expense for most households, especially those that have minor children. You need to set aside money to buy gifts for your children and extended family. 

While you may not know what you are getting them yet, you should have an idea of how much you want to spend. Use that figure to set a savings goal and work toward it throughout the year. 

Back to school

Buying new uniforms or clothes for school is another predictable expense. You also need to account for school supplies, backpacks, and other resources required by the school. Start saving early so you can take advantage of any perks offered by your state, such as sales tax-free weeks. 

Summer and vacations

When summer arrives, you want to have the financial wiggle room to take a trip or go out and enjoy fun activities. Start planning early and give yourself a savings target so you can set aside cash for the summer. While you don’t need a concrete plan of where you are going or what activities you will participate in, you should set a rough budget. 

Tax season

If you tend to owe money at tax season, set aside some cash to cover this expense. You should plan to cover your filing fees, as well as any back-due taxes. Making a lump sum payment will help you avoid paying any late fees or interest. 

Annual subscriptions and renewals

Renewing subscriptions annually instead of monthly can help you save money throughout the year. However, if several of these renewal fees hit in the same month, it can strain your budget. Make a list of all of your subscriptions and identify when the renewal payments process. Budget for these costs so you can stay on track to hit your financial goals. 

Why seasonal expenses catch people off guard

Seasonal expenses sometimes surprise people because they aren’t recurring, month-to-month obligations. If you are only covering an expense once a year, it’s easy for the obligation to get lost in the shuffle. Without a solid budget and savings plan, you are bound to overlook at least one or two seasonal expenses. 

What to do when a seasonal expense sneaks up on you

Even if you know how to plan for seasonal expenses, these added bills can sometimes catch you off guard. If that happens to you, there are other options available, such as a cash advance. 

A cash advance from sources like Grant Cash Advance can give you access to money quickly so you can close the gaps in your budget. If you’re eligible, Grant Cash Advance can provide $25 to $500 quickly. 

Conclusion

Setting aside a little money each month to cover seasonal expenses can alleviate stress. However, if the seasonal expense you need to cover is coming up fast, you may not have time to save. Grant Cash Advance may be able to fill in the gaps. 

With Grant Cash Advance, eligible consumers can request $25 to $500. If eligible, you can opt for standard or expedited delivery for a small fee. 

Download Grant Cash Advance and see if you qualify for an advance today.