What do I do with large, infrequent bills like annual subscriptions?

Large, infrequent bills — anything over roughly $100 per occurrence — are good candidates for a custom pouch. By funding them separately with a small monthly contribution, you keep your Bills pouch balance predictable month to month instead of letting one big hit wipe it out.

That said, this isn’t a hard rule. If you already have several months of runway built up in your Bills pouch, absorbing the occasional large bill may not be worth the extra pouch.