Lesson 3 of 8 · 13 min

A savings system that runs itself

Combine your emergency fund, sinking funds and goals into one automated system of named pots that works without willpower.

In this lesson you will

Design a set of named savings pots with clear purposes
Prioritise pots when money is limited
Automate transfers on payday
Track progress towards each goal

Education, not advice. This lesson explains general ideas and does not consider your personal situation.

From separate ideas to one system

In Level 1 you met emergency funds and sinking funds. Most people also have goals: a holiday, a new laptop, a course, a deposit. Separately, they are a lot to manage. Together, they become one simple system: named pots, funded automatically on payday.

Step 1: Name your pots

Each pot has one purpose, a target and, where it makes sense, a goal date.

Pot	Purpose	Target	Goal date
Emergency	Unexpected costs, income loss	$6,000	Ongoing
Yearly bills	Insurance, renewals	$1,100/year	Rolling
Car	Servicing, tyres, repairs	$600	12 months
Holiday	Summer trip	$1,800	9 months
Laptop	Replacement	$1,200	18 months

Many banks let you create labelled savings spaces. If yours does not, a single savings account plus a simple tracking sheet works.

Level 2: Budgeting & Cash Flow

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Budash Academy and the Budash blog are for general education only. They are not financial, investment, tax or legal advice, and they do not take your personal circumstances into account. For advice, speak to a qualified, regulated professional.