Just funded my freedom account!
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|Fri, 05-16-2003 - 11:51am|
I'm also planning to add an "electricity" fund. I averaged the cost of electricity over the year, and each month that it is below the average, I will contribute the difference to the fund, so the money will be there when the bills go up in the winter. Also, since I do some freelance work, there will be a "taxes" fund, in which I'll put 30% of every freelance check I get, and by that means will have the money ready to pay the taxes on it at the end of the year. And if my taxes are lower than that--woo-hoo. I'll snowflake the difference onto my credit cards.
I also put another $50 in my contingency fund, and will do that every month. I'm thinking of putting my contingency fund in a money market instead of a savings account. It's nearly as safe, and pays a better return. And since I shouldn't need my contingency fund for anything short of catastrophic disaster, it doesn't matter that I can only write four checks out of it per month and for a minimum of $250 each. It also won't matter that the funds aren't available for 30 days after deposit, because each deposit is only a small percentage of the available balance.
Anyway, just wanted to share my excitement over the new budgeting skills I'm learning. It is such a relief to know that when "unexpected" auto repair bills arrive, and at Christmas and birthdays, we'll have cash ready to fork over, no fuss. And we may not ever have to touch our contingency fund again! Woo-hoo!
Thanks for listening,
P.S. Other good news--it sounds like dh is going to be getting another big promotion and raise at work again. Somebody opened the floodgates for us! :)
P.P.S. I have a guess who opened the floodgates, and I believe truly it is because we loosened our grip on our money and committed to charity every month, starting with this latest paycheck, and refused to change our plans even when unexpected hitches showed up. If dh gets the raise we expect, I have already committed to up our charitable giving to the full 10% that Hunt (and the Bible, LOL) recommends. It's so fun writing out that check to a cause we believe in every month!
P.P.P.S. This post never ends! LOL Just wanted to add, that we are still more than a couple of tens of thousands of dollars in debt, and will be in debt for several more years, but it's good to be on the road out.