You know what feels great . . .?

[red92s]

. . . having rent money in your checking account before the first of the month.

I was never really living paycheck-to-paycheck, but I was always depending on my end/beginning of month direct deposit to cover my rent checks on the first. Through some combination of Ebay sales and moving to a cheaper apartment, I have enough to cover rent (and all expenses between now and the end of the month) as of my mid-month deposit!

[kork13]

That, my friend, is called 'security'.

In the last year since I've been out of college, I've found that keeping a minimum level ($1k in my case) in my checking account has been very good for me... Not only the assurance that I'll be able to cover all of my expected expenses, but also that if one shows up unexpectedly (like a big-ish, forgotten wedding gift [check] given 6 months ago... not that it's happened to me... ). I work as if that $1k level is the floor, and anything that takes me below that line means I need to save out more funds the next month to make sure it doesn't happen again. It's all a matter of "JUST IN CASE". Over time, I think I'll be raising my floor to be a bit over 1-month's expenses.

[red92s]

Most of the reason my checking account balance was getting that "down to the wire" to begin with is that I have an accurate budget and actively try to have nothing left . . . even if large portions go to various savings accounts. I'd shuttle 40% of my check that I knew wouldn't be needed to a combination of savings vehicles within hours of the deposit, then get down to a $50 balance the day before the next deposit. I guess if nothing else, that means I'm budgeting pretty accurately and have a good idea of where my money is going.

I always wanted to have rent money in my account in advance, but there is such a large "hump" there to overcome. Once you get it done one month, it's almost self-sustaining after that. I was so used to making large savings deposits that stopping for a month to build a checking buffer would have felt "naughty". A flurry of selling stuff while preparing to move, and a 18% drop in monthly because of the move, built up the buffer without me having to quit saving at all!

[Shane Watson]

Since I am not using credit card I keep a medium note in the secret pocket of my wallet. So, for any reason I wouldn't get stuck anywhere and wash the dish. And for the bigger security I always hide some cash in place I wouldn't look. In the time of real need I can use it. So, that is what feels good for me.

[am_vanquish]

Originally Posted by red92s

Most of the reason my checking account balance was getting that "down to the wire" to begin with is that I have an accurate budget and actively try to have nothing left . . . even if large portions go to various savings accounts. I'd shuttle 40% of my check that I knew wouldn't be needed to a combination of savings vehicles within hours of the deposit, then get down to a $50 balance the day before the next deposit. I guess if nothing else, that means I'm budgeting pretty accurately and have a good idea of where my money is going.

I always wanted to have rent money in my account in advance, but there is such a large "hump" there to overcome. Once you get it done one month, it's almost self-sustaining after that. I was so used to making large savings deposits that stopping for a month to build a checking buffer would have felt "naughty". A flurry of selling stuff while preparing to move, and a 18% drop in monthly because of the move, built up the buffer without me having to quit saving at all!

Congratulations!! That is indeed a great feeling. Financial security is priceless ... even if there is a dollar-amount that will cover your expenses for a full month.