Question on budgeting strategy

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
Question on budgeting strategy
2
Fri, 04-11-2003 - 1:43pm
I am not doing a very good job of squirreling away enough money for the really big hits each month, like the mortgage. I can almost make the payment on one week's paychecks from both me and my husband but not quite. So I figure I will take part of one week and part of the next and make it. But what happens is the money from first week seems to always get spent and then I am panicking by the second. I was wondering if you all thought it would be a good idea to open two checking accounts. We have automatic deposit. One would be just for my husband's checks which would go to the mortgage and groceries (he does the shopping) and the other would be in my name for the other bills and child care, etc. I think if I didn't have access to the mortgage money I wouldn't spend it. It seems ridiculous I don't have any more discipline than I do but apparently I don't.

Any thoughts?

iVillage Member
Registered: 03-28-2003
Fri, 04-11-2003 - 3:07pm
Dh and I have a money market account for our larger bills: rent, auto insurance, life insurance, car, CCs, etc. On the 3rd and the 17th of the month the money market automatically "sucks" a certain amount from our checking account, enough to cover all of those bills. Our insurances are automatically decucted from that account and I write checks from the money market for car payment, rent and credit cards - the money market is also where my snowflake money goes - so, if I have an "extra" $100 or $40, or whatever, I deposit it into the money market and it sits there until I'm ready to send in the CC payments. That way the money doesn't "accidentally" get withdrawn for cash or spent on something stupid. All I pay from our regular checking account is utilities, and that's only because the money market checks have to be for >$100, or I'd put enough $ in there for ALL the bills. It's defeinitely a good idea. :-) Jen
iVillage Member
Registered: 03-26-2003
Fri, 04-11-2003 - 7:20pm
I do the same kind of thing with my checking account, because I can schedule recurring payments online. My paycheck only comes once a month, so ALL of my payments get automatically paid a few days after the paycheck is deposited (there's a lag time in case something goes wrong). A chunck also automatically scoots over into my savings account at the same time.

I am still bad with the leftover cash, but next month we are going to withdraw all we use for cash during the month (groceries, haircuts, gas, pocket money), and put it in seperate marked envelopes for each category. Once the "pocket money" envelope is empty, that's it!