Working backward from your goal
The first thing that you need to decide in this respect is
how much you are going to need in order to fulfill your milestone expenses. You
should always start off with the ones that you are expecting to happen in your
life such as graduation, holidays, birthdays, weddings, and anniversaries that
are important to you. You need to take into account even the smallest factors
such as the costs you would incur in traveling to the locations where these
events are supposed to happen. Always tally the costs that you are able to expect
in a reasonable manner.
Using a savings account
You can do far worse than starting a separate savings
account that can be used as your milestone fund. It could be different from
your emergency fund and other regular savings for that matter. Your milestone
fund is supposed to cover for the money that you are going to spend for things
that are supposed to benefit you from spiritual and emotional points of view.
Things such as emergency fund and normal savings are supposed to take care of
your financial well being. Your accounts and objectives need to be separate
from each other.
Incorporating it in your budget
You can start to incorporate these savings in your budget.
In this case you need to start small and then you can progress even as time
flows by. You can start off by funding for your retirement. The same approach
should also be taken for your savings and emergency funds. There is no need to
put in a lump sum amount of money in said account straightaway. You can always
start with small amounts such as 100 dollars. It would be better for you if you
were able to automate the savings. You can get this done in any way that you
want.
Speaking with professionals
It is very important that you have a clear idea
regarding how the milestone fund may fit into your long term financial plans.
It is highly possible that you may have already lined up a number of savings accounts.
You need to look at all of them in conjunction with the financial plan that you
have as of now. In case you have questions it is better to get them sorted with
the help of a professional financial advisor. The best part of a milestone fund
is that it can ensure that you have the money when you need it.