question on calculating TMI

[squeegee]

Hi Friends

I was so surprised when I searched the forum for TMI and got zero hits!

This might be a simple question but here goes. I think I understand how calculating TMI works when your expenses recur every month... but what do you with one-time expenses, such as - moving, taking vacations, adventures, etc?

For example let's say the cost of shelter + food + my desired fantasy lifestyle adds up to $4000/month. Easy - my TMI is $4000. But let's say I also want to go on a vacation that will cost $5000. I see no reason to increase my TMI to $9000 since I only need that extra 5000 once. How would you guys handle this?

Thank you!

[wildsoul]

Play BIG.
One of my first business coaches taught me this:
If you shoot for a bullseye, most of the time you'll hit in the 70-80% range. So shoot for *more* than you need. Then you have room to fall back on.

[GAtkins]

There are two ways, you could do it monthly and put the extra in the month it is expected to occur. Or, you could take an average monthly amount of your yearly extras and spread them out over the year.

For example $6,000 one time would be $500 per month on average. Just add the $500 to your monthly expenses.

I probably do the second one.

Glenn

[squeegee]

Thanks guys, that makes sense. :)
-squeeg