We don’t always know what surprises life is going to throw at us. I’m not talking about life’s good surprises, but the ones where your washing machine starts to sound like it’s going to launch into orbit, your car starts making an awful squealing noise, or when you realize its that time of year to pay the annual HOA fees. The timing of these lumpy expenses can be hard to predict and hard on cashflow. But with some forethought, we can have money set aside for them. I like to use high yield savings accounts, setting aside a little amount every month into specific “buckets” to prepare for these surprises. This removes a lot of the financial stress of the situation. It turns the situation from an emergency to just another little surprise, that you have now planned for. These “bucket” savings accounts are available with Ally, Capital One, and several other institutions where you can create multiple custom named accounts. Create your own buckets for Car Repair, Appliance Replacement, Insurance Premium, HOA Fees, or whatever else you might find helpful.

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