Originally Posted by tinuviel_k
I use the YNAB (You Need A Budget) system, which has a feature that I really love. You save up one month's income and then from then on you use your last month's income to pay for your current month's bills.
Or, what I do, is I break down larger, less frequent expenses (like auto/home insurance bills) into what they would cost monthly. So for example, if you insurance bill was $600/year, I would have an insurance line item on my budget with $50 next to it. That $50 would be marked as "spent", even though it is not spent in that month. At the end of the month, I take the $50 and put it into a savings account attached to my checking account, so the money is ready for when the insurance bill comes due. I do this with a few expenses, including car/house insurance, property taxes, car maintenance, house maintenance, etc.
Also, I don't know if this is realistic for you, but I have been able to save much more by my DH being paid weekly. Each month, I only account for him getting 4 paychecks. There are 4 months out of the year when he gets 5, but I don't list the income from the 5th paycheck in the monthly budget. That "extra" income goes directly into a separate savings account...right now it's to pay off our cars. If you don't have the wiggle room for that, you could always use that 5th payment to put into savings for those infrequent insurance payments, etc. or to save up the one month's income as the PP stated.
Hope any of that makes sense!