and give each one a custom name. To help visualize my savings, I created separate accounts for my engagement ring and new car goals and labeled them with my goal names.
First, I picked the date I wanted to reach my goal and have my sinking fund full. Next, I divided the remaining amount I needed to save by the number of months until my deadline. This gave me the amount I needed to save each month to reach my goal on time. I'd take any money leftover from underspending in my budget and apply it to these savings accounts, as well. This motivated me to be smart with my money. If I didn't need to spend, I didn't. I knew putting that money in my sinking fund could end up helping me buy my new car sooner.
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