How do you divide your savings?

iVillage Member
Registered: 11-18-2008
How do you divide your savings?
11
Fri, 04-06-2012 - 1:22pm

I've heard people talking about dividing their savings up into different funds - college, emergency, vacation, etc. Do you literally keep these separate in different accounts, or do you keep a spreadsheet of how much you have for each and just lump them together in one account? If so, do you ever end up using the money for something else?

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iVillage Member
Registered: 04-16-2008
Fri, 04-06-2012 - 2:56pm

I like to keep everything simple.

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iVillage Member
Registered: 07-24-1997
Fri, 04-06-2012 - 3:03pm

These days it is so easy to set up savings accounts online that right now I have about 8-10 of them.

I keep college savings in CDs:

iVillage Member
Registered: 11-18-2008
Fri, 04-06-2012 - 4:44pm
That sounds similar to what I have now, only I feel like I borrow from the "kids" column too often.

We just deposited a sum that we had taken out of the stock market, so I paid off a hospital bill, paid back the kids column, fully funded my annual health insurance column and our semi-annual car insurance column and the rest went into a generic emergency column.
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iVillage Member
Registered: 11-18-2008
Fri, 04-06-2012 - 4:46pm
CDs are a good idea. That would certainly insure that we don't borrow from the kids account. We tend to do that with the rationalization that they won't be going to college for years. (Of course there will be big expenses before that, like cars and class trips and sports, etc.)
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iVillage Member
Registered: 03-15-2012
Fri, 04-06-2012 - 10:37pm

Great question!

iVillage Member
Registered: 05-15-2001
Tue, 04-10-2012 - 9:12pm
Things are so different now! I began savings with CDs, until there was enough money to invest in Mutual Funds. Now that we're on the spending end of savings, I've been so frugal all of these years, that I can"t
seem to spend money! I spend very little on ourselves, except for money for Rx. I've been giving a little money to our nieces to help pay for college. One of them is finished now, and the other one has just started. I want them to have good jobs.
pinchpenny2000
iVillage Member
Registered: 11-18-2008
Wed, 04-11-2012 - 9:45am
Jiggy102 wrote:

I then have another savings account I like to call my FREEDOM FUNDS (taken from Mary Hunt book Debt Proof Living).This account I transfer money to each payday and have a spread sheet to keep track of how much money I have alloted for each category.

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iVillage Member
Registered: 11-18-2008
Wed, 04-11-2012 - 9:49am
Well that sounds like a good problem to have! Sounds like you guys did a great job of saving for retirement!
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iVillage Member
Registered: 04-08-2008
Thu, 04-12-2012 - 1:10am
That savings account is a fabulous idea. I get small checks all the time.

We don't keep different bank accounts for savings. I have a work RRSP (401K equivalent here), a 2 personal RRSP (DH is beneficiary but I had these before him) and a RESP (college fund for kids).

We have a small emerg fund, $1500 and save for vacations. I just keep a spreadsheet with those two totals so that those 2 things are subtracted from our bank account total right away. I also keep a "yearly" total there too - with the amounts for property taxes, insurance, xmas, etc.

We don't really have to worry about illness or medical costs bc that is all covered here. DH and I have 100% pay guaranteed for the first 6 mos of illness and 60% after that. We can survive with one of us on 60% if need be. All of our medical costs are also covered - I just got a $1500 hearing aid and did not pay anything for it. (it's out of pocket but fully reimbursed later).

We also have a LOC at 2% that can cover up to $120K in an emergency. I know it's silly to borrow...but I figure better to pay down debt that is higher than that and then IF I need the money, I have that option. So far, we have never needed the money and we've paid a lot down on our mortgage...

Dee
iVillage Member
Registered: 03-15-2012
Fri, 04-13-2012 - 12:46pm

About the disability insurance (sick pay) you might want to investigate further.

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