Of all the things I've had to deal with as an adult learning the ins and outs of finances has been the toughest. Knowing one mistake can make my family suffer for a long time puts added stress on me. To combat this, I try to prepare for just about everything I can think of. One way I deal with it is by having multiple savings accounts. Below we will explore why I have three different savings accounts, and what they are used for.
One of the first savings accounts we started was account for our future. Each time my husband gets paid, 10% of his pay is directly deposited into this account. We try to avoid using this money at all costs. It really is a last resort account for us. We are hoping to raise the amount deposited when we pay off some of our larger bills.
Annual and Bi-annual bill savings
This one was my idea. Let's face it, when a bill is only due once or twice a year, it's easy to forget about. There are a million things that run through my head each day, and something like our vehicle tax or insurance can get lost in the mix. I know that these bills cost us about $1300 a year, so I transfer around $125 a month into this account. This account ensures that I have enough money to cover either of these bills when the time comes.
This is our worst case scenario money. This money isn't kept in a bank, it's kept in our home just in case the bank is unavailable. We have no set rate for the amount of money that is kept in this account, or how much we add to it. It's a piggy bank for loose change and left over bills. We've used this account during a citywide power outage due to severe weather, and for an emergency visit to the veterinarian with our dog. We are often surprised by how quickly the money we toss in this piggy bank can add up. At last check we had around $500 in this savings account, and I'm sure it has grown since then.
Having these accounts helps guarantee that my family has the money it needs. They give me some peace of mind because I know there is money available if I forget about something that needs to be paid. I'm sure some people think having so many savings account is a bit extreme, but I plan to expand in the near future by adding a Christmas savings account.
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More from this contributor:
- Banking & Budgeting
- savings accounts