The best way to budget for large irregular expenses is to determine their annual cost, divide that amount by 12 to calculate the monthly cost, and then place the monthly amount in a savings account to hold until the bill is due. In other words, treat the expense as if it were a monthly bill even though you may pay it only once or a few times a year.
Here is an example. Suppose your annual property tax bill is $2,400, payable in four $600 installments. When you divide $2,400 by 12 months, the result is $200, which is how much you should save per month. Every three months, you will accumulate $600 in time for each quarterly payment.
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