How many checking accounts do you have?

[disneysteve]

You manage the different bits using a spreadsheet?

No. I have a spreadsheet for our investments but nothing to divide up the checking account in any way.

[Nutria]

No. I have a spreadsheet for our investments but nothing to divide up the checking account in any way.

How do you keep track of how much you've saved for different things, like vacations, new laptops, property tax, etc, etc.

Or do you use multiple savings accounts?

[disneysteve]

How do you keep track of how much you've saved for different things, like vacations, new laptops, property tax, etc, etc.

Or do you use multiple savings accounts?

We've never had the need to track things that way. Retirement savings is separate. College savings was separate. Everything else is co-mingled. We're very responsible with our money and don't spend what we don't have. If our savings are diminished because of a recent expenditure, we adjust spending for a bit until we build it back up. If I know there is some big expense looming, I'll make sure we have enough set aside for it. But other than that, the accounts are very fluid with money coming and going multiple times throughout the month.

[Nutria]

We're very responsible with our money and don't spend what we don't have.

Without explicit categories forecasted well into the future (Feb 2018, when semiannual auto insurance is due), we'd forget about most of those future expenses, see lots of cash in the checking account and then spend it.

Explicit categorization is the only way for us to make sure that we are responsible. (The "Uncategorized category" is for the majority of things that we don't have an explicit category for...)

[disneysteve]

Without explicit categories forecasted well into the future (Feb 2018, when semiannual auto insurance is due), we'd forget about most of those future expenses, see lots of cash in the checking account and then spend it.

And that's why there isn't one perfect system that will work for everyone. You need to figure out where your problem areas are and do something to account for those to keep you out of trouble.

It also depends how tight your situation is. We have a large enough surplus that it doesn't really matter if one category or another is particularly high in any given month. There's cushioning in the accounts to cover whatever comes along.

But the main thing is me just knowing instinctively and from years of experience how much we need to maintain in the account. I don't need to have a written list of upcoming expenses because at this point in our lives, those expenses are all pretty routine. There are no surprises. And if an emergency crops up, we have extra savings for that.

[Jluke]

We've got two at the same bank:

• For standard monthly spending & bills.
• A "front end" for our various long-term savings categories and a pseudo "savings account". Most of this money lives in "high" interest online savings accounts and CDs; excess money is moved from the "front end" at EOM, but if we need more -- like for semi-annual auto insurance -- money is move from online savings to the "front end".

It seems complicated when written down, but is pretty simple in practice.

What do all of your subcategories add up to?

It seems like you are well organized and have fun tracking your finances but I'd bet that you are close to reaching a point where you just need to have x amount available as an EF. My x=30k

[disneysteve]

It seems like you are well organized and have fun tracking your finances but I'd bet that you are close to reaching a point where you just need to have x amount available as an EF. My x=30k

Exactly. Over time, you learn how much is enough to keep on hand.

[Nutria]

And if an emergency crops up, we have extra savings for that.

I think that all those categories is me not wanting to have many reasons to dip into the EF (not that we even have an explicit EF).

(If the tranny drops on the van on the same day that DS gets his teeth knocked out and the AC dies, they aren't financial emergencies, since we have funds for each of them. )

[MonkeyMama]

It seems like you are well organized and have fun tracking your finances but I'd bet that you are close to reaching a point where you just need to have x amount available as an EF. My x=30k

I don't agree with this, at all. Maybe if your finances are very consistent and nothing ever changes. I personally need more of a plan.

I am sure we could do just fine with X dollars in the bank, but it wouldn't be very efficient.

[rennigade]

I have 1 checking...wife has 1 checking. We actually dont have a joint.

I wonder how many "younger" married couples have separate accounts? I know my parents generation...everyone seemed to have joint. Doesnt matter to me...doenst make much of a difference other than the fact that we probably use more checks than if we have joint. Hers is mine, mine is hers, all is ours, yada yada yada...seems to work for us.

Not to mention I use a pencil in my checkbook registry and she uses a pen, she will cross stuff out and I will use an eraser. Thats a deal breaker imo of ever having a joint account.

[Jluke]

I am sure we could do just fine with X dollars in the bank, but it wouldn't be very efficient.

It is not efficient because the money is not invested, because of the amount or something else?

I was thinking it would be inefficient if I had 20 subcategories of potential expenses that may not happen all at once.

[MonkeyMama]

It is not efficient because the money is not invested, because of the amount or something else?

I was thinking it would be inefficient if I had 20 subcategories of potential expenses that may not happen all at once.

Because I don't want to leave money laying around that can be invested, yes. & also because this doesn't work very well as to fluctuating circumstances.

I think having 20 categories is also inefficient. I don't disagree with you on that point.

[scfr]

I was going to consider opening another savings once my emergency fund was back to where it needs to be but now seeing other people only have 1 or two accounts I no longer see the need to

It just depends on your personal style and what works best for you. Some people need to actually physically separate the money in to different accounts (or envelopes), in order to prevent themselves from spending money in ways they don't intend. Some people are able to keep the money together in one pot but mentally separate the money on a spreadsheet or ledger, and never touch the emergency funds unless it's a true emergency (whatever they have decided they consider an emergency).

People on these forums successfully practice both approaches.

[Nutria]

What do all of your subcategories add up to?

$23k.

But that includes "mandatory deferred spending" like annual taxes and semiannual auto insurance, plus the "gonna spend soon unless I lose my job" category of "Vacation".

It seems like you are well organized and have fun tracking your finances

There's that...

but I'd bet that you are close to reaching a point where you just need to have x amount available as an EF. My x=30k

Without explicitly planning for those future needs, we'd quickly... not "nickle and dime" but "dime and quarter" our savings back down to zero through a combination of "stuff" and more short vacations.

[corn18]

It sounds like you have a great system that works well for you.

I do something similar in that I have 2 checking accounts. One for monthly expenses and one for everything else. The monthly expenses account has 1-2 months worth of expenses in it most of the time.

The other one has a lot in it (EF, vacation, car, surgery, other stuff). I often think about investing that in my long term savings plan, but then I chicken out and leave it sit there. Between that and my taxable savings account, I could buy a nice house and rent it out. Tempted to do that, but don't have the guts to take the risk.