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  1. “it doesn’t lend itself to future planning or being intentional with your money.”

    This is so true. 50/30/20 is the start of a budgeting journey, not the end.

    Your monthly contributions to sinking funds should be somewhere in the Needs and Wants buckets. (I *need* to replace my tires, pay semiannual insurance premiums, etc, and I *want* to buy gifts for birthdays and Christmas.)

    One thing I did not see you mention are reserve funds (“intentional” emergency funds). Usually you just lump it all that money into the E-fund, but things like HSA can’t be.

    You can split your HSA contribs into multiple buckets (Need and Savings), if you have recurring medical expenses.

    1. Great point on the sinking funds! Separating needs from wants can be tough. That’s one of the reasons 50/30/20 doesn’t work for me. I know I’d cheat. ;o)

      I’m not actually familiar with the idea of reserve funds. How are they different from sinking funds?

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