FOUNDATION · VOLUME 2 OF 3 · STRATEGIESSaving shelf
Goal-Based Savings & Acceleration
The second book on saving, for when you are saving for several things at once. It shows how to rank and fund competing goals, turn predictable bills into sinking funds, plan a home or car purchase in full, keep cash in the right accounts, automate the whole system, use tax-advantaged accounts for each goal, put windfalls to work, and pass both money and good habits to the next generation.
Chapters8
Reading time45 min
Worked examples27
Updated2026-10-01
What you will be able to do
- Rank your savings goals and split one monthly amount between them, with a rule for when two goals collide.
- Turn every predictable non-monthly bill into a sinking fund and plan a home or car purchase by its full cost, not its payment.
- Choose where each pool of cash should sit, from high-yield savings to CDs and Treasury bills, and automate the transfers.
- Match each goal to the right tax-advantaged account, from the 401(k) and IRA to the HSA, 529 plan and FSA, and fill them in a sensible order.
- Decide in advance how a windfall will be used, and put the basic family documents and money habits in place.
Contents
8 CHAPTERS · ABOUT 45 MIN- 01Balancing Several Savings Goals at Once How to rank competing goals in four layers, split one monthly amount with a clear rule, decide in advance what wins when a house, college, retirement and debt collide, and review the plan as life changes.6 min4 computed
- 02Sinking Funds for Predictable Expenses Why yearly bills, upkeep and replacements feel like surprises, how to size a sinking fund for each, where to keep the money, and what to do when a bill and its fund do not match.6 min3 computed
- 03Planning a Home, a Car and Other Major Purchases How to price a large purchase by its full cost rather than its monthly payment, what to have in place before buying a home, how loan length changes the cost of a car, and how timing and patience strengthen your position.6 min5 computed
- 04Where Your Cash Should Live: Savings Accounts, CDs and Treasury Bills How much the rate on cash really matters, what to check before opening a high-yield account, when CDs, Treasury bills and I bonds fit, and a simple structure that gives each account one job.6 min3 computed
- 05Automating Your Savings System Why automatic saving outperforms good intentions, the three layers to automate from payroll to bills, a calendar that keeps checking from running dry, and habits that raise saving every year without new decisions.5 min4 computed
- 06Tax-Advantaged Accounts for Every Goal The 2026 limits and rules for the 401(k), IRA, HSA, 529 plan and flexible spending accounts, what each is best used for, and a common order for filling them when money is limited.7 min4 computed
- 07Putting Windfalls to Work Why refunds, bonuses and inheritances tend to disappear, how to decide the split before the money arrives, the order for the foundation share, the rules that differ by type of windfall, and a 48-hour plan.5 min2 computed
- 08Building Wealth That Lasts Across Generations The three kinds of family capital, the accounts and gift rules that pass money on efficiently, how to teach children about money at each age, the documents every adult needs, and how to talk about money as a family.6 min2 computed
CALCULATORS USED IN THIS BOOK