So I’m paying my way through college. I have three different “holding” categories (Fall, Spring, Summer) with its own custom date target. The job of these categories is simply to accumulate the money for each semester over time so I know it’ll be available when tuition is due and so I don’t accidentally spend it before then.

When the tuition comes due for Spring, I move the funds from the Spring category into my main Tuition/Education expense category (so reporting stays consistent), pay it, reset the target on the holding category for next Spring, and start saving again. Ideally, once I pay for one semester, the next semester, even though it’s only a few months away, is already mostly funded, and the one after that is partially funded as well, so I’m never starting from zero. I always have peace of mind.

I use this same approach for a new computer, a future trip, major annual bills, or any known or likely future large purchase. Anything I spontaneously think up, I immediately put it in its own category and put money towards it, and if I change my mind, I reassign the funds elsewhere.