Plan for the costs that aren't monthly

The costs that wreck budgets are the ones that don't come every month: school fees, insurance renewals, car service, Christmas travel, weddings and funerals.

• List every irregular cost you expect in the next 12 months and its rough amount.
• Add them up and divide by 12.
• Save that amount every month in a separate pot, like a money market fund.

When January school fees arrive, the money is already there. No loan, no stress.