You have big expenses that you incur every year or every few years. For example replacing furniture, your laptop or getting a new mattress. But it can also be an annual recurring expense, like municipal taxes.

Many households save in the short term, but often use those same savings to make it to the end of the month.

Do you do this too?

Prevent unexpected expenses and make sure you don't have to touch your savings account. Understanding what you really have to spend starts with mapping out such big expenses. Think for example of:

  1. municipal tax
  2. excess of health insurance
  3. buffer gas / water / electricity
  4. birthdays
  5. public holidays
  6. vacations
  7. household contents & new equipment (sofa, laptop, TV)

Bonus points: update your expected income each year with the Belastingdienst Toeslagen (NL) (so you don't receive too much and have to pay back a large amount later).

Think about how much you need per year for each of these seven expenses. Calculate a monthly amount (by dividing by 12) and put this amount in your savings account each month. That way, you'll pay the same amount every month toward your annual larger expenses. You know exactly how much budget you have left for the rest of the month and when the bill for a bigger expense comes in, it's already ready in the savings account.

Your future self will thank you!