Savings

[dawnwes]

Thanks. We have just been lumping it as well for major savings. I do have some separate ING accounts. One for each child for just general savings for them. One was to save for a computer, which we got last month. So, small savings for specific items in ING and a large general account for major savings.

Dawn

[photo]

All cash is lumped together. I keep a few thousand in a checking account for bills and simply add to it from a money market when needed. Paychecks are directly deposited into the money market. The only way for this to work well is to maintain a frugal attitude towards spending, so that way we never overspend.

[BMEPhDinCO]

I keep it separate for several reasons:
1. at quick glance, it's easier to see how much is left in each account so if we are planning a fun purchase, we don't get excited at the higher amount, or get tempted to "just take a bit more"
2. when transferring money around, it's easier to not hit the 6 transaction limit when you have multiple accounts to pull from
3. I don't have to worry as much that all the money could disappear due to bank error or fraud, there are several accounts...

But I do think, however it is done, multiple savings buckets are a must for a good budget.

[Fizgig]

I keep separate funds:

1) Emergency fund that I refuse to touch unless the sky is falling. It's important to me to keep this sacrosanct and not get into the habit of dipping in.

2) House account, for taxes, insurance, and repairs. I do not escrow because I'm creeped out at depending on other people to pay my bills correctly.

3) Splurge fund, for toys, vacations, charitable giving, etc. I have a hard time giving myself permission to spend on nonessential items, and designating this account as my "go crazy! have fun!" money makes it easier to not be such a scrooge. I can spend this money on absolutely anything I want, while knowing that my important priorities are already taken care of.

I intend to start a car replacement fund (my car is 3.5 years old and has been paid off for years), but haven't done so yet.

[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?

[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]

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]

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]

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]

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]

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.