How to stop big auto-debits from derailing your budget

We hear it all the time: You’ve put in the work to build yourself a fab monthly budget, complete with all your bills, typical expenses, and wiggle room for fun. It’s going great, until halfway through the month, when you suddenly remember that a big, annual expense is due in a few days. So you adjust what’s left of your budget to make room for it … which might mean saying goodbye to restaurants or shopping or that treat-myself budget for a few weeks.

In the face of budgeting setbacks like these, it’s easy to feel discouraged, like you’ll never feel totally in control of your money no matter what you do. But when it comes to expenses that fall outside your monthly budgeting routine, there’s a way to smooth out the surprises. It’s called a sinking fund, and it’s one of the easiest ways to take the anxiety out of your day-to-day money management.

Here’s how it works.

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