Step 4: Put money aside for reserves
Monthly reserves or lump sum payments
Take your known expenditures from last month, last quarter and last year
Anticipate expenses for this year
Prorate the amount on a monthly basis
Examples	Last year	Monthly
Taxes (personal property)	$   240.00	$   20.00
Insurance (house)	$   360.00	$   30.00
Medical and dental	$1,200.00	$ 100.00
Vacation	$   600.00	$   50.00
Car/home repairs	$   600.00	$   50.00
Christmas gifts	$   600.00	$   50.00
Birthday gifts	$   400.00	$   33.33
Clothing	$   600.00	$   50.00
Total	$4,600.00	$ 383.33