Q: How can I set a savings goal in EEBA and track my progress towards reaching it?
Whether it’s your property taxes, a summer vacation, or your Holiday spending, we all have expenses that seem to creep up on us through the year.
Don’t be surprised by these predictable expenses! Instead, set a savings goal to budget for them throughout the year. You’ll save up for them bit by bit, and have peace of mind knowing you’ll be ready when the time comes to pay them.
Use Annual/Irregular Envelopes to Save for Big Expenses
Start by creating an Annual/Irregular Envelope in EEBA:
- Head to the Edit Budgets page to create an Annual/Irregular Envelope.
- Set the Envelope’s Budget to how much you’d like to save each year.
EEBA will break down your annual goal into regular monthly parts.
Fund the Envelope Over Time
Over time, fund the Envelope as part of your monthly budget. Over the course of a year, you’ll have reached your goal.
If you want to reach your goal in less than a year, you can:
- Pre-fill the Envelope for the months that have already passed, or;
- Raise the budget amount.
For Example: It’s June 1st and you’re starting to think about your Holiday Expenses. You want to have $600 saved up by the end of November, so following the directions above you create a “Holiday Expenses” Envelope in EEBA with an Annual budget of $600.
However, it’s already June! Instead of a full year, there is only 6 months (June – November) left to save up the $600. You can:
- Pre-fill the Envelope with $300 ($50 a month for the 6 months that have already passed) so that you’ll have $600 by the end of November, or;
- Raise the budget amount to $1200, so that it will fund $100 a month for the 6 months you have left, leaving you with $600.
Spend From the Envelope
When the time comes, you won’t have to worry about how much you can afford. Use the funds you’ve been saving in your Envelope to pay for the expense.
Thanks to Megan for the question!