I don't call it a freedom account per se as I haven't read or followed Mary Hunt, but I do have separate envelopes for things that would be accounted for in a freedom account and another envelope for my emergency fund. I use Mvelopes, so the money is physically sitting in only 2 accounts at the same bank - a checking account paying 4% and a savings account paying 2.5%. The checking account only pays 4% up to $25,000, so I transfer between the accounts to maintain close to that without going over.
My "freedom account" envelopes include car maintenance, car registration, life insurance, gifts, medical (for copays, prescriptions, etc), and cat care (i.e. food and vet expenses). The freedom account envelopes have money that is sitting in the savings account and they get funded monthly with 1/12 my estimated annual expense.
I recently completed funding of a 2 tier EF - one tier with enough to cover 6 months expenses and a second, smaller tier which would cover most emergencies. The smaller amount would reasonably cover any major car repair, most any vet emergency, or the max annual out of pocket medical expenses. The larger amount is meant to cover extended job loss or some kind of major, catastrophic emergency. This money is split between my checking and savings accounts, but in its own envelope so I know not to touch it unless it is an emergency. Now that I have it maxed out, I really don't want to touch the EF, so every effort will be made to cash flow emergencies if possible. This is also why I chose to establish a 2 tier EF. Most emergencies should be able to be handled by the smaller amount, so I won't have to touch the 6 month fund. Yes, I realize it is all just psychological and I am a bit OCD.
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