Big annual expenses such as road tax, insurance and fees always catch us by surprise. How do we plan for them?

Annual expenses are no surprise if they are broken into small monthly savings throughout the year. List all the big costs that come once or twice a year, add up the total, and divide it by twelve. Set that amount aside every month into a special fund so the money is ready when the time comes. This way you need not borrow or dip into emergency savings for bills that were actually expected. Review this list once a year because costs change. This habit makes the financial year feel smoother and calmer. See family finances.