Savings Acccount

Do you have a minimum you like to keep in your regular savings account?

I have separate accounts for emergency savings and regular savings (for things that might come up, car maintenance, home repairs, clothes, entertainment, etc.).

Since I don't have 8 months of salary in the emergency savings yet, I wonder if I should only keep so much in the regular savings and transfer it to the emergency to build that up.

Savings Acccount

Is there a benefit to transferring stuff around? Higher interest rate?

I have a different view then most people on this. I dont see a reason to have multiple accounts unless it's going to get me a better rate. I have one savings account. I know that I need XX,000 for emergencies. So I know as long as I dont go below XX,000 in that account, I'm OK. I don't make the distinction between emergency and regular, I guess. I just know that if I go below a certain number, there are problems.

I hate balancing the accounts, so I try to minimize.

Re: Savings Acccount

Posted by Blazesyth

Is there a benefit to transferring stuff around? Higher interest rate?

I have a different view then most people on this. I dont see a reason to have multiple accounts unless it's going to get me a better rate. I have one savings account. I know that I need XX,000 for emergencies. So I know as long as I dont go below XX,000 in that account, I'm OK. I don't make the distinction between emergency and regular, I guess. I just know that if I go below a certain number, there are problems.

I hate balancing the accounts, so I try to minimize.

Re: Savings Acccount

I like to keep 4 months living expenses in savings at all times.

We had several savings accounts but due to interest changes I just transferred everything into 1 savings account.

We have a certain amount automatically transferred every week and during the month, once all the bills are paid, whatever is left over (minus what we want to keep in checking for daily living expenses) I put into savings too.

I'm not 1 for several accounts for different reasons. I think, if I had 2k in a vacation acct. but then $500 in an acct for taxes or car repairs or whatever, that doesn't mean I can spend the 3k on a trip. kwim?

Re: Savings Acccount

Re: Savings Acccount

We keep one savings account for long term savings ( Internet bank acct) and one account for Short term, ie property tax

We used to make sure we had a certain amount ( very high) in our savings. Now we only keep a 4 month emergency amount. since the interest rates are so low on savings account we have been funneling ALL extra money to our mortgage and contributing to different investment funds. I can not let $$$ sit in an account and do nothing.

Message edited 6/12/2013 3:10:53 PM.

Re: Savings Acccount

Posted by Onemoretime

We keep one savings account for long term savings ( Internet bank acct) and one account for Short term, ie property tax

We used to make sure we had a certain amount ( very high) in our savings. Now we only keep a 4 month emergency amount. since the interest rates are so low on savings account we have been funneling ALL extra money to our mortgage and contributing to different investment funds. I can not let $$$ sit in an account and do nothing.

Re: Savings Acccount

Question, what are you writing in the note books ?

Re: Savings Acccount

Re: Savings Acccount

I do better with multiple accounts- my financial planner had me set up a bucket system

I have 4 savings accounts

Long term savings- right now this is for a down payment

IRS- I have an S corp and pay my own taxes

Operating- which is idealy a few months worth of business expenses

Short term savings- for shopping or tires- what ever I need

each time I get a commission check certain percentages go into each account-

I could make $0 a month to over $25K -

Re: Savings Acccount

Re: Savings Acccount

We have one checking account and one savings account. The checking account has about a 25k cushion so we never overdraft. Our savings account has about 1 year of post-tax salary. I don't see the use of additional savings account. We do have many brokerage accounts for IRA, 401k, etc.

Re: Savings Acccount

We have a joint savings and then we both have our own personal savings.

At this point, we are aiming to keep a couple month's worth of expenses that we never pull from, and hopefully it will grow.

I've been in the situation where we needed to drain our whole joint savings because DH had a bad year (he's self-employed) several years back and it takes a long time to recover from that, here on LI at least.

It also gives me peace of mind to know I have my own little savings account that I never pull from, in case god forbid, I ever need it.

I had a 401K and 403B from my last couple of jobs that have a decent chunk of change in them. Absolutely having one with my new job, as well.

Savings Acccount

We have 3 savings accounts:
1. The emergency we never intend to touch, but will if we have to
2. The vacation fund
3. Regular savings attached to checking.

Re: Savings Acccount

I have four accounts. 2 savings- one savings we don't touch. Another savings for upcoming events, etc.

The other two accounts I have is a checking for strictly bills and a checking linked to a debit card for everyday money like food shopping, lunch, entertainment- whatever.

All the money that we make gets deposited into our "bills" account and we then transfer money to savings, debit account and misc. savings.

Re: Savings Acccount

Savings Acccount

I always read 6 months was a good amount for a emergency account.

After years of savings and paying off our other debts we now have 3 years of savings.

we have it mostly in funds in low expense funds at low cost brokerage online.

we keep the minimum necessary to pay bills in our checking and savings accts.