Tip for Saving Money

You know how there is just never money "leftover"? :) Well, I wanted to share something I've been doing for a few years that works for us. I take advantage of savings accounts to do just that- SAVE. (Original, huh?) BUT- I set up one for each thing I need to save for. (Christmas, Travel, etc. each have their own savings account) While in WI- we banked at a credit union and you could have pretty much as many different savings accounts as you wanted. When we moved to NY- I switched to using ING Direct's online savings accounts (at the time that had GREAT interest rates on them). Perhaps you already participate in a Christmas Club or something of that nature through your bank to help you save for Christmas time expenses. Same principle, just extended to more areas.

I have accounts for things such as-

• Home Downpayment Savings
• Christmas
• Homeschool Expenses
• Auto Insurance
• Taxes (we pay Self-Employment taxes quarterly as clergy)
• Traveling
  
• and others
  

This system (since I am NOT an accountant!) takes the "work" out of saving for me. From our budget- I have the designated amount transferred automatically each month into these various accounts. The rest of the money is our working budget to pay bills and get cash for monthly expenses like gas and groceries. Then, when I need to pay, for example, my six months of car insurance, the money is sitting there in the Auto Insurance account waiting. I transfer it into checking and pay the bill.

[Take the auto insurance bill that comes twice a year and divide it by 6. Have that amount transferred each month into the account. It's like paying yourself a monthly bill- and paying them twice a year.]

When I need to buy homeschool curriculum or go on an expensive field trip- the money is available and doesn't have to be "found"- as in "where am I going to find the money for THAT?" It's worked pretty well for us. If you are financially savvy- this may seem silly to you. In that case, disregard it. If you, however, would spend every dime in your hand (like me!) and then some- this may help you greatly- and "save" you from yourself!!! Happy Saving!
~Katherine