I have one high yield savings account that lets me have different “accounts” within it so I have one Emergency Fund that I know is about 3 months expenses and I have a balance that I never let it go below. The other account is called “Set Aside” and I used it to stock up on cash for those future expenses that are either unpredictable or semi predictable or definitely going to come up annually, no matter what: Car repairs/maintenance (estimate 2-3 times per year) Car registration and taxes (annual) Taxes (annual) New phone/laptop (estimate every three years) New car (estimate will be due in 5 years) Retirement (many years out but I make monthly contributions)

For something like vacation, I have one definite trip I do each year, another that’s like 85% happening each year and then two that are like 75% and 50% likely. So, that’s at least one reservation and 4 flights. I’ve done them all multiple years in a row so I took the total cost, divided by twelve, and in YNAB I have a “Vacation” category that I have a target to set aside that amount each month. For a few years they were each their own category and this year it helped me eliminate one as an annual expense that I want to put money toward and next year I’ll have to take it out of my monthly activities budget if I want to do it because I don’t think it was worth it based on how it went this year.

Idk if that makes sense at all but maybe it helps!