Freedom fund question for MH groupies...

iVillage Member
Registered: 03-27-2003
Freedom fund question for MH groupies...
Fri, 06-06-2003 - 7:49pm
So I have finally taken the hint and started reading Debt Proof Living. The Freedom fund thing sounds scary and complicated to me. My question for the people who are making this work, can you give me examples of your accounts. The ones in the book didn't fit me, so I was hoping to learn some real world sceneraios.


Rebecca J.

iVillage Member
Registered: 04-19-2003
Fri, 06-06-2003 - 9:21pm
Hi Rebecca,

I have just recently reworked my budget to include a Freedom account so it still needs some tweaking but I think you will get the jest of it. I have one account and I am going to put a monthly amount for each category. (Will just be starting this in June :)

Car Maintenance & Repairs 65.00 monthly (approx 800.00 year)

Gifts (for that xmas and birthdays)- 60.00 (720.00)

Medical/Dental- 100.00 (1200.00)

Clothing 100.00 (1200.00)

Haircuts 40.00 (480.00)

Scrapbooking 20.00 (240.00)

Fees/lessons 30.00 (360.00)

Medical does not include insurance premiums as I have a set amount paid monthly. I chose to do something for hair cuts because it always seems we are all going to the hairdresser the same month and its hard to have the money for everyone to go the same month. (It also includes highlighting my hair ;) I love to scrapbook so I wanted to be sure to put money aside for that. I won't spend for months but than when I do go to the store for supplies it can add up very fast. Fees/Lessons are for the kids - I will use them to pay for swimming lessons etc - things like that. These are all regular things I pay for throughout the year just not on a regular monthly basis.

Some of these figures will be adjusted I am sure. Example if after 6 months of contributing to my clothing fund I have 500.00 already built up I am probably putting too much in. Mary Hunt's theory is to have your Freedom funds funded for one year. So, in therory I should always have 1200.00 for clothing and 800.00 for car maint etc. and when I use that money to replace it as quickly as I can. I am sure that as time goes on I will think of other accounts I could add to the list and will be modifying the amounts I am putting into the account.

I hope this helps you.


iVillage Member
Registered: 03-27-2003
Sat, 06-07-2003 - 5:27am
Here are the accounts we currently have:

Ds birthday: $10/month ($120 will cover party stuff and a small gift--we are not big on buying "stuff"--he gets plenty of that from relatives)

Auto: $260/month (total of over $3000 a year--scary--includes insurance premiums, which vary month to month, repairs, taxes, inspection costs, maintenance, etc.--everything but gasoline and loan payments)

Christmas: $15/month (again, we're not big on big presents)

Misc gifts: $25/month (children's birthdays, relatives birthdays, etc.)

Misc: $25/month (for anything we've forgotten to include, lol, as well as just, well, miscellaneous little stuff that comes up)

In-laws loan: $10/month (we've owed them about $2500 since before we were married seven years ago, and while I can't afford to pay them a large sum each month, I've decided it's important to at least start and when it reaches, say, $500, I'll mail it to them, and then keep going until we've repaid)

Taxes: varies. I put in 30% of all untaxed but taxable income, such as checks for my writing and income from my cloth diaper company.

Power: varies. Our average per month is a little over $80, so any month when it is under that, we put in the difference, so when we have a big bill, the money's already there.

I'd like to add "leisure" and "clothes" accounts, but we just don't have the funds right now. I'd also like to get out of our rip-off dental plan and start putting that amount into an FA instead to cover any expenses, but we have to wait for an official "enrollment period" in order to make changes to our plan.

So far it works well for us, but we really have to resist the temptation to see these accounts as "savings"--it's tempting to want to watch them grow, and not use them when we really should. What happens is that then we run out of money in our regular checking account because we're covering expenses that should have been covered out of an FA, and then we don't know which FA to take it from, and it gets all gummed up. LOL. So, if you set them up, be sure you really use them!!

Good luck. It sounds complicated when she describes it, but it's a great concept, and it's not that hard to do really.