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