I have a separate account called "One-Shots." Any large expenditure that occurs less frequently than yearly goes into that account. The 10-year historical average from this account is $15K/yr, and that figure is included in the annual expense budget that must be covered from pensions, withdrawals, etc. That figure is probably too big, as the last 10 years included such things as used cars for teenage kids and some rather large home improvements when we bought the current house. Those won't all repeat, but we assume that some new forms of unexpected spending will crop up, like taking care of aging parents. So it provides a reasonable baseline estimate.
I don't actually set money aside in a separate account, as that seems like an unnecessary complication. And yes, I include all such expenditures in the annual expense numbers. However, I sort-of track it separately from basic living expenses, along with income tax and travel. Basic living expenses are relatively stable. Taxes, travel, and "one-shots" are all over the map.
I don't actually set money aside in a separate account, as that seems like an unnecessary complication. And yes, I include all such expenditures in the annual expense numbers. However, I sort-of track it separately from basic living expenses, along with income tax and travel. Basic living expenses are relatively stable. Taxes, travel, and "one-shots" are all over the map.