Most people work toward several financial goals at once but keep their money clumped together in a single savings account. With this setup, it’s easy to forget how much you’ve saved for each goal — and to borrow money from one goal to pay for something else. I’ve found a better way.
To save for my goals, I use targeted saving. Using an online high-yield savings account, I’ve split my money into several different subaccounts, each of which I’ve named for a specific savings goal. My bank lets me name my accounts and subaccounts, so I give them titles to indicate their purpose.