Why annual bills wreck budgets
In short: a monthly budget shows costs that leave every month. Annual bills are invisible – until they arrive. Then an amount the size of half a salary is missing, and the bill ends up on the credit card or in instalments.
In Switzerland this is especially pronounced because, unless you pay source tax, income tax is not deducted from your salary. Add Serafe, insurance with annual premiums and irregular costs such as the health insurance franchise.
The example: six items, one monthly amount
| Item | per year | per month |
|---|---|---|
| Cantonal, municipal and federal tax | CHF 9’600 | CHF 800 |
| Radio/TV levy (Serafe) | CHF 312 | CHF 26 |
| Car insurance | CHF 1’140 | CHF 95 |
| Vehicle tax | CHF 480 | CHF 40 |
| Household contents and liability insurance | CHF 360 | CHF 30 |
| Franchise and co-pay (reserve) | CHF 1’500 | CHF 125 |
| Total | CHF 13’392 | CHF 1’116 |
The monthly amount of CHF 1’116 is rounded up to the franc. Serafe is CHF 312 per household and year from 2027; the other values are examples for a household with a car – use your own bills from last year.
Where to keep the money
A sinking fund only works if the money does not disappear into everyday spending. Use a separate account or sub-account, fed by a standing order on payday, and pay the annual bills from there.
The balance tells you at any time whether the fund is on track. If it is clearly below plan, a bill was higher than expected or the monthly amount is too low.
Taxes: instalments, prepayment or final bill
The biggest item is almost always tax. Many cantons send provisional instalments, others a final bill after assessment; some pay interest on prepayments. The fund works the same in every case: set aside one twelfth of the expected annual tax each month.
Your last final tax bill is a good estimate. If your income changed substantially – new job, part-time, moving canton – recalculate rather than rely on last year.
The formula in Excel
Two columns per item are enough: annual amount and due month. The monthly amount is =ROUNDUP(Amount/12,0). The running balance per month is the sum of contributions so far minus the bills already due.
If the balance turns negative in any month, the fund falls short: raise the monthly amount or pay a bill in instalments – many tax offices and insurers offer that, sometimes for a small surcharge.
Built in: fixed costs with provisions
In the household budget for Excel you record each fixed cost with amount, rhythm (monthly, quarterly, half-yearly, yearly) and due month. The sheet calculates the monthly provision and its balance month by month; one of 13 built-in checks warns you when it falls short. CHF 49 once.
In the BudgetHub app you set annual bills up as recurring items and see in the calendar when each one is due.