Summary: Preparing for Large Annual Expenses - Howard Dayton and Steve Moore discuss how best to prepare for times of increased spending such as the Christmas holidays and annual vacations. They provide the following suggestions, which can also apply to one-time annual expenses that can catch you by surprise: Pay off existing Christmas (or vacation) debt Looking ahead to next Christmas, don't buy things using one penny of debt. You do this by paying cash for everything and, obviously, saving up ahead of time. To do that... During your Zero-Christmas-Debt year, even while you're making monthly payments to pay off last Christmas, put the same amount of money in savings each month to prepare for the upcoming Christmas season. Also do this for any one-time annual expense. If you make some sort of an annual payment in the amount of, say, $120, set aside $10 each month to cover it. When the expense comes due, you'll have the money waiting to pay for it. Howard and Steve also answer calls and emails (800-525-7000 or moneywise@compass1.org) about the following: God's guidance on selling your house through a short sale (Psalm 37:21, Proverbs 3:27-28) Whether or not life insurance is Biblical and whether it's appropriate to have it on your children (1 Timothy 5:8) Parents wanting to help daughter make the transition from college to the adult life, whether to charge her for rent, and if so, how to report it on tax return. Thanks for your prayers and generous financial support which allow us to keep the program on the air!
