Step 8: Fund Future Expenses

Once you have your emergency fund, worry fund, and traction on your retirement savings, you can advance to your future savings and additional investing.

Save for big purchases such as cars, vacations, or furniture, so you don’t go into debt replacing these items.

For example:

If you have been making a $450 per month car payment and the car is now paid off, continue saving $450 a month toward your next car. Set a budget, goal, and time frame for your next purchase.


The ultimate goal is to have an account that buys your future expense (car, vacation, furniture) for you so you are not in a constant cycle of saving for the purpose of buying.