Savings

[krantcents]

I do not have a sinking fund specifically for major purchases. I do not see the purpose of doing that, I want my money working for me.

[photo]

Originally Posted by krantcents

I do not have a sinking fund specifically for major purchases. I do not see the purpose of doing that, I want my money working for me.

Do you mean a money market or an investment, such as stocks?

[snafu]

I do a home version of zero based budgeting, sweeping all but $ 1,000. 'float' from chequing to saving at month's end when pay shows deposited therefore each month starts fresh. The float is the bank's minimum which gives me a long list of free services. My investment program is linked to these accounts. I challenge myself to lower expenses but lately utilities, food and transportation costs have been ratcheting up so I'm losing ground.

[MonkeyMama]

Originally Posted by photo

There's one thing I don't quite understand. I can't imagine that most people have static expenses. One month may produce an expensive repair (or taxes due or to fill a large propane gas tank, etc) yet another month may require very few expenses.

For those who are strict budgeters, where do you put the money from a low-expense month -- leave it in your checking account or add the money to your emergency fund?

I personally don't leave any money in my checking account - I run it to $0 every month. If I don't need the money one month - it goes to savings to earn interest.

[GREENBACK]

Originally Posted by MonkeyMama

it goes to savings to earn interest.

I used to do this in my 90's money market account that earned 5%. I don't even bother with it now.

[LivingAlmostLarge]

lump together but i have an excel spreadsheet that I earmark spending like travel i budget a ridiculously high number annually because we live really far from family and need to buy airline tickets.

But if we lost a job we'd cut that in a heartbeat and not visit.

[photo]

Originally Posted by MonkeyMama

I personally don't leave any money in my checking account - I run it to $0 every month. If I don't need the money one month - it goes to savings to earn interest.

Thank you for your answer.

[LivingAlmostLarge]

i leave about $5k or one month expenses in checking account because i'm too lazy to transfer money back and forth.

[Joan.of.the.Arch]

All our very liquid savings are in interest bearing checking, but at three different institutions, separated not according to what we are saving for but according to the interest rates on the accounts. When interests rates are the same, priority is given to keeping the credit union account high.

[photo]

Originally Posted by LivingAlmostLarge

i leave about $5k or one month expenses in checking account because i'm too lazy to transfer money back and forth.

That is exactly my thought.

[dawnwes]

Well, I was actually not talking about just $5K as a buffer or to pay general bills, I was referring considerably more than that for things like a car sinking fund, 6-12 months of living expenses, etc....


Dawn

Originally Posted by LivingAlmostLarge

i leave about $5k or one month expenses in checking account because i'm too lazy to transfer money back and forth.