Savings cushion for planned and unexpected expenses

Saving • ~6 min

Use a plan for bonuses, refunds, and other windfalls

Decide percentages before the money arrives so urgency and impulse do not make the whole decision.

Decide percentages before the money arrives so urgency and impulse do not make the whole decision.

Why it matters

A windfall can support several priorities at once when you create an order in advance.

What to focus on

Plan before receipt
Cover urgent needs first
Leave room for enjoyment

ExampleA $2,000 refund could send $1,000 to emergency savings, $600 to debt, $300 to a goal, and $100 to enjoyment.

Put it into practice

Write a percentage plan
Check for overdue obligations
Transfer goal money promptly

Write down one decision and schedule a short review. Small, repeatable steps are easier to maintain than a one-time overhaul.

Educational information only. Money in Reach does not provide financial, investment, tax, insurance, credit, mortgage, or legal advice.

Keep going

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