One Time Expenses and Disbursements allow you to account for future large expenses and control the date, account, and future value.
Recurring expenses, on the other hand, are regular costs like monthly bills or premiums and can be managed in the Recurring Budget section.
One-time expenses are non-recurring planned costs, such as home investments, vacations, or special events. These should be entered under the 'One-Time Expense section' to ensure accurate financial forecasting.
Disbursements offer additional functionality, allowing you to add annual expenses and model large expenses as tax deductible. When entering an annual disbursement, you'll need to ensure that the stop date is 13 months from the start date to account for a full year.
Recurring expenses like yearly insurance payments can also be modeled as single amounts with matching start and stop dates in the budget.
Another option for large expenses is to include them in the recurring expenses as a one line item in a specific year. If you do this, the planner will aggregate the expense with your other expenses according to your withdrawal strategy and order, and you don’t have to worry about which account it’s withdrawing from.
When you enter a One Time Expense or Disbursement, you’ll enter the future value of the expense, then you’ll choose a specific account. If there will not be sufficient funds in that account on the date chosen, you’ll get a coach alert.
To modify expense amounts linked to specific events, navigate to the associated section, update the amount, and the related flows or charts will adjust automatically.
Keep in mind that the Planner has a method of using your income and savings to fund your expenses. Disbursements and Transfers are used to override or add to the default expense modeling.
To handle HSA withdrawals for medical expenses, you can manually set up a transfer from the HSA account to an after-tax account with the lowest growth rate under 'My Plan > Money Flows.'