Here are the extra accounts we have at ING (currently at 1.1%) and Smarty Pig (currently at 2.15%):
- Emergency Fund - The cash we have set aside for job loss or anything unexpected that the other accounts won't cover.
- Taxes and Insurance - We don't escrow, so we put aside money every month for property taxes and homeowner's insurance.
- Auto and Home Maintenance - Ever since we paid my car off, we've been paying ourselves that payment for future car and home costs. We upped that amount when we bought our house but are keeping it somewhat minimal since we're trying to pay off my husband's car as quickly as possible.
- Roth IRA and Stocks - We put extra money here even though we also contribute automatically to the Roth IRA. We use this extra money as an opportunity fund.
- Vacations - We save here for our big annual vacations and our smaller weekend trips.
- Hubby's Fun Money - This is for anything he has a craving for.
- My Fun Money - This is for my hobbies and habits like Shirt Woot.
What works for you?
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I've still got everything at ING. We have 10 different categories right now, all in one account. I just keep track of them in my budget spreadsheet.
ReplyDeleteProperty Taxes
Present Club (for gift giving during the year)
Investment
Emergency Fund
Insurance (Car, Condo and Umbrella)
Car (for repairs and eventual replacement)
House (for the new one next year)
Water Bill (paid twice a year)
Entertainment
Preschool (setting the money aside now for July)
My wife and I also have separate savings accounts for our fun money. It's probably more complicated than needs to be, but it works. I'm just happy that I have money to put aside for all the categories.
We have a similar breakdown:
ReplyDeleteProperty Taxes (paid annually)
Auto Insurance (paid quarterly)
Vacations - this account has only .02 in it! :*(
Tuition - tax refund goes to kids' school :*(
Homeowners' Assoc'n. (paid annually)
Vet/Kennel (2 dogs)
Sewer/water bill (paid quarterly)
Christmas
Emergency Fund (short-term)
Auto Maint./Deductible ($1000 deductible in the event of an accident)
Home/Appliance Maintenance
Satellite Radio (paid annually)
Lawn/Garden (seasonal expense)
There are other accounts in other places: Book bill for high school, kids' savings accounts, and long-term EFund, to name a few. PHEW!
Hello Crystal!
ReplyDeleteWe do have several accounts as well: a wedding savings account (which will now be repurposed for big expenses account, such as taxes, car insurance payments, etc.), we have a vacation account, and we have an emergency account. This is aside from our checking account.
Also, congrats on your networth update, and the advertisements!!!
I have mine in one account (outside of the emergency fund, that is its own). Reading this made me realize I should probably set the money aside in greater detail. Thanks for making me think!
ReplyDeleteWe do something similar. We each have an emergency fund, then I have an Antarctica fund, and we have travel, appliances/household, and escrow funds.
ReplyDeleteI have an emergency fund, miscellaneous, car insurance, and escrow account. Love ING!
ReplyDeleteI have an emergency fund, vacation fund, new car fund, husband's clothes fund, vacation fund, home repair fund, and charity. Charity is because I usually give one lump sum at a time.
ReplyDeleteSome are at ING, some are in SmartyPig.
The other breakdown lists made me think I should have one for auto insurance. I never thought of that one before!
When we finally do pay off the more
oops! Tiny foot hit enter before I was done typing! When we do pay off the mortgage, I will probably set up a property taxes fund, too.
ReplyDeleteIt's surprising how many people admit to doing this. It's a cumbersome strategy. I thought it was one of those things I was overcomplicating in my life, and that I was the only person in the world who would do such an involved thing. So when I wrote about it was surprised at the number of readers who, like yours, have a slew of special-purpose bank accounts!
ReplyDeleteMikeS, that present club account is a great idea!
ReplyDeleteHolly, I'm sorry about your vacation account. That's stinky.
ReplyDeleteoh, may I ask how much satellite radio costs? I'm really interested after hearing my in-laws'...
Thanks Amanda! I'd suggest turning the wedding account into a tax account...homeowner's taxes (as you know) suck and sneak up on us every November...
ReplyDeleteKris, glad to help when I can!
ReplyDeleteJackie, an Antartica fund? Where would you like to go in Antartica? That could be a fun post. :-)
ReplyDeleteMrs. Money, yep, I'm definitely an ING fan too!
ReplyDeleteJulie, I love the fact you're exposing the baby this early to personal finance! :-)
ReplyDeleteI've always had one account--reading about all these sub-accounts drives me crazy, so I know I could never do that.
ReplyDeleteFrugal, I only have the one ING account. Just divide up the balances in my spreadsheet.
ReplyDeleteBFS, got tired of Christmas and b-days always wrecking my budget. Just figured who i normally buy gifts for and an average amount to spend per gift, then just set the amount aside.
I try to keep my accounts to a minimum. There was a time when I had way too many accounts on the go, and it became too much. That being said, I like to keep my savings goals separated, and use no fee savings accounts for specific goals.
ReplyDeleteThanks for the continuing great content on the site BFS!
BFS-
ReplyDeleteSirius used to cost $135 annually, but a tax was put in place in 4/09 for royalties to the artists which added $25.00, so now it's $160. I save $14.00/mo. ($168) since I expect the cost to increase each year. DH loves it.
They have great deals for new customers and you can also opt to pay a one-time cost ($395, I think) for a lifetime membership, which we may decide to do in the future.
BFS, Sirius had a special running when we signed up at $77 for a year. I may sign us up for a lifetime membership when this year runs out.
ReplyDeleteThanks Holly and Julie...my anniversary is just around the corner. I'll point him this way. :-)
ReplyDelete