Create separate savings pots for known future expenses. Save a small fixed amount monthly so the money is there when the expense arrives. Eliminates financial surprises.
Eliminating financial emergencies caused by predictable expenses. Car repairs, holidays, and insurance renewals stop catching you off guard.
List all predictable future expenses: car maintenance, holidays, insurance, medical, travel.
Estimate the annual cost of each. Divide by 12 to get your monthly contribution.
Set up automatic monthly transfers into labeled sub-accounts or one dedicated account.
When the expense arrives, spend from the fund — not your regular checking account.