Transamerica - Hidden Expense Calculator

Home : Planning Your Finances : Planning Tools : Hidden Expense Calculator

Hidden Expense Calculator

It is easy to calculate normal monthly expenses by tracking your expenditures over the course of 30 days. The problem is that many people then use these numbers for planning purposes, and are then surprised when things like car insurance or property tax bills pop up unexpectedly. A better way to deal with these "hidden expenses" is to calculate them ahead of time and handle them on a monthly basis just like any other bill. Each month simply set a fixed amount of money aside in a separate account to pay for hidden expenses when they pop up.

The calculator below will help you discover your hidden expenses. Its goal is to try to remind you of all of the different bills that crop up just once or twice a year. The calculator will estimate the total amount due for all of the hidden bills listed and then divide that amount by twelve to give you an accurate monthly set-aside number.

Auto Insurance:
Enter the total amount of money you spend each year on auto insurance. Remember that auto insurance normally is billed on a six month cycle, so you may have to multiply your last bill by two.
Home Insurance:
Enter the amount you spend on homeowner's or renter's insurance.
Extra Insurance:
Enter the amount of money you spend on other insurance policies, for example for a boat, umbrella policy, jewelry, etc.
Life Insurance:
Enter the amount you spend on life and/or disability insurance.
Vacation:
Enter the amount you spend on vacation(s) each year.
Tuition:
If you are paying for a dependent in school or taking classes in college or night school, you probably get a tuition bill only two or three times a year. Enter your total annual cost of tuition and fees here.
Birthday Gifts:
Enter the amount of money you typically spend on all birthday gifts each year. Consider your mother, father, spouse, children, siblings, etc.
Holiday Gifts:
Enter the amount of money that you expect to spend on gifts for the holidays this year.
Other Gifts:
Enter the amount you will spend on other gifts: mother's day, father's day, secretary's day, graduation, etc.
Charitable Contributions:
Enter the amount you give per year to charities.
Car Repair:
Enter the amount of money you typically spend in a year on car repair. Remember things like oil changes, tune-ups, tire replacement, etc. If you have no idea enter at least $250. Note that this expense will probably vary with mileage.
Home Repair and Maintenance:
Enter the amount you expect to spend on unexpected home repairs and maintenance. If you have no idea, enter at least $500.
Automobile Taxes:
Enter here the amount you typically spend on automobile taxes, including yearly registration fees.
Property Taxes:
Enter here the amount you typically pay per year on property taxes. If you have a mortgage the property taxes may be handled as part of your mortgage payment.
Medical and Dental:
Enter here the amount you expect to pay for medical and dental visits not covered by insurance. For example, if you do not have dental insurance and you will have two check-ups this year, enter the cost of those check-ups here. (Note: Also included in the Monthly Cash Flow Calculator.)
Other:
Enter here anything else you can think of that you typically pay on a yearly basis and is often forgotten.

Total:
This is the total amount of money you spend per year on "hidden" expenses.
Monthly Total:
This is the total divided by 12. You should be depositing this much in a separate account each month. Pay this amount "to yourself" just like you pay any other monthy bill.

This calculator is furnished by Smartmoney. Smartmoney is not associated with Transamerica Life Insurance Company nor any of its affiliates. While Transamerica provides this calculator as a service to its clients, Transamerica does not guarantee its accuracy, nor does Transamerica give tax or legal advice. Clients and prospects must consult with and rely solely upon their own independent advisors regarding their particular situation. The results and explanations generated by this calculator are hypothetical and will vary due to user input and various assumptions. Transamerica does not guarantee the accuracy of the calculations, results, explanations, nor their applicability to your specific situation. We recommend that you use this calculator as a guideline only. A Transamerica representative can help you with the calculator and your results, and answer any questions you may have.

Top of Page