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I have an acct that I put money in from every check for annual bills. Some of those bills, like our yearly propane, can vary depending on prices, weather and such. How much of a "just in case" factor should I add in?
 

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I would say, average what the cost of propane has been for the last 5 or 10 years and then add an extra 25% on top of that so you're covered. If you really want to make sure you have the cash to cover it, double the average.
 

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Discussion Starter #3
The propane was just one of the annual bills. There's internet, insurance and taxes in there as well.
 

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~I don't have a sinking fund but I pad everything by 10%. This will probably be the first year in the last 10 that I will come very close to hitting or exceeding that 10%.~
 

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I have a sinking fund for this as well. I haven't changed the amount that I put in there for the last 3 years. Since my taxes have gone down for the last 3 years, I have extra in there automatically. But if I were to put a bit extra, I do like the 10% idea.
 
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You might want to subcategorize your funds so you can have different "fluff" factors.
 
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oh.

Well in that case, I'd again, average out what you've paid in years before and then add an extra 10-25% on top of that. I used to overpay all my bills by rounding up so if my elec was $35.75, I'd pay $40; if my heating was $167, I'd pay $180-200 and so on.
 

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Discussion Starter #9
You might want to subcategorize your funds so you can have different "fluff" factors.
Last year I went over my propane budget by about 8% but, for obvious reasons, I was under budget on my taxes. I really don't want to make this any harder than it is.

I think I will go the 10% route and treat it as a hidden savings acct. If it gets too large, I will transfer the extra to the HELOC reduction.
 
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