 TITLE: How to Budget for One-Time Expenses CONTENT: How to Make a Budget That Covers All Types of Spending\n------------------------------------------------------\nTo make a strong budget you can stick to, you'll typically need a few different bank accounts. But by setting up automatic transfers and getting regular notifications about your balances, you'll be able to stay on top of your spending and saving without too much extra effort. Here's how to do it:\n*   **Use your checking account only as a place to deposit your paycheck and pay for regular expenses.** This includes groceries, rent and utilities. Since checking accounts often don't come with high interest rates, you'll lose out on potential earnings if you keep all your money there. Set up automatic transfers from your checking to your separate savings accounts to make sure you earn as much interest on savings as possible. You will need a cushion in your checking account to prevent an overdraft. For instance, you may decide to keep an extra $500 to $1,000 there per month beyond your basic expenses and the amount you send to savings, but transfer the rest elsewhere.\n*   **Use a high-yield savings account for your emergency fund.** This allows you to earn interest on money that you most likely won't spend for a while. You could also keep an emergency fund in a money market account or certificate of deposit (CD), but these accounts come with more restrictions on how and when you can withdraw your money. If you don't yet have an emergency fund, you can start transferring money to that fund each month, as well, until it's built up to the recommended amount of three to six months of your necessary expenses.\n*   **Set up separate high-yield savings accounts.** This can be where you keep funds for annual expenses, and perhaps other accounts—or sub-accounts at the same bank—for one-time expenses. You'll transfer money there from your checking account monthly, based on your estimates for how these expenses will cost. END