How to budget for irregular bills: rates, rego, WOF and insurance
Short answer: list every bill that doesn’t come weekly or monthly, add up what they cost in a year, divide by 52, and move that amount into a separate “bills” account every week. When a bill arrives, the money is already there.
Why irregular bills cause the trouble
Most household budgets handle the weekly and monthly costs fine. What breaks them is the bill that turns up three or four times a year, or once a year: the rates instalment, the car rego, a WOF that needs new tyres, the annual insurance renewal, the school camp. Each one is “unexpected”, but together they’re completely predictable.
Step 1: list the irregular bills
Go back through 12 months of bank statements (a full year catches the annual ones) and note anything that isn’t weekly or monthly. Common ones for New Zealand households:
- Council rates — usually paid in instalments through the year; many councils also let you pay weekly, fortnightly or monthly by direct debit.
- Vehicle licence (rego) — you can usually choose how many months to licence for, so check your last renewal for the amount and period.
- Warrant of fitness — the check itself, plus a sensible allowance for repairs it turns up. How often you need one depends on your vehicle; your current WOF label shows the expiry date.
- Insurance paid annually — house, contents, car, life or health.
- Car servicing and tyres, and the vet, dentist and optometrist.
- School costs — donations, uniforms, stationery, camps and trips.
- Annual subscriptions, memberships and domain or software renewals.
- Christmas and birthdays — the same dates every year.
Step 2: set aside a weekly amount
Add up the yearly cost of everything on the list and divide by 52. That’s your weekly set-aside (some people call it a sinking fund). Move it automatically on pay day into a separate account that you don’t spend from day to day, so it isn’t mistaken for spare money.
Paid fortnightly? Set it aside per fortnight (yearly total ÷ 26) instead. Give yourself a small buffer on top — prices go up, and WOFs find things.
An example
These numbers are made up to show the method; check your own bills for real amounts.
- Rates: $3,200 a year
- Car rego for two cars: $220 a year
- WOF checks and repairs allowance: $400 a year
- Contents and car insurance, paid annually: $1,300 a year
- School costs: $600 a year
- Christmas and birthdays: $1,000 a year
Total: $6,720 a year. Weekly set-aside: about $129.23 ($6,720 ÷ 52).
$129 a week can feel like a lot. But it’s the same money you’d otherwise be finding all at once, several times a year, usually from the credit card.
If a big bill is due soon
If you’re starting this with a big bill only a few weeks away, the full yearly amount ÷ 52 won’t have built up in time. Two options:
- Spread it. Ask the council or insurer about paying more often — many offer weekly, fortnightly or monthly payments, sometimes at no extra cost.
- Catch up. For the bills due soonest, divide what’s owed by the weeks left until it’s due and set that aside on top, just until they’re paid.
How Jarful helps
In Jarful you can set any category weekly or monthly, so rates and rego sit in your budget as a weekly amount alongside everything else. The 12-month cash flow forecast shows which months the big bills land in, so you can see a tight month coming before it arrives. See how to make a weekly budget for the rest of the setup.
This guide is general information, not financial advice. Rates, licensing and WOF rules are set by your council and NZTA Waka Kotahi; check with them for your own amounts and dates.