How do you divide your savings?
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How do you divide your savings?
| 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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I like to keep everything simple.
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:
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.
Great question!
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.
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
About the disability insurance (sick pay) you might want to investigate further.
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