Recurring Expenses

How to Think About Recurring Expenses in Financial Hope

When you’re thinking about a reoccurring expense think of your rent your water bill your electric bill and so on. Anything that comes out of your account on a recurring basis to the same vendor is a reoccurring expense in Financial Hope.

These kinds of expenses are going to have an origin account a destination a recurrence pattern and an amount. This amount can be fixed or variable.

An Example of a Reoccurring Expense in Financial Hope

let’s say that you had A phone bill paid to Google fi every month on the 6^th.

You have selected the data plan that allows Google fi to charge you different amounts each month.

This kind of expense would be a variable expense it has a minimum monthly expense a maximum monthly expense and an average monthly expense.

In some months you’re going to have a high bill because you were away from Wi-Fi another month you’re going to have a little bill because you didn’t travel very much.

The way Financial Hope will account for this is to be slightly more conservative in its estimates. You will set a min and Max and it will take one standard deviation higher than the average over the past six months.