[Diolla]

I read Dave Ramsey's book The Total Money Makeover first and he calls them 'Sinking Funds' then I read Mary Hunt's and she called them 'Freedom Accounts' Same idea different name.

I budget a small amount each payday for things like Car & Homeowners insurance (which came due this month $600+) & Property Taxes. I find it very nice to have those funds set aside (earning interest, Ima) until I need them. I also keep budget money in a regular bank savings acct for things that aren't bills but that aren't regular expenses like Gifts, Clothes etc. I use my Visa card to pay for them then transfer the money to checking to pay the Visa bill. I keep track of it all with a budget program I found online so I always know how much is available to spend.

I used to keep real paper envelopes with the cash but then through this site I found this program that tracks it all. I am still getting comfortable with the system but if it works for me I will earn more interest and get cashback from my Visa.