Savings Account?

Spinoff of Oil Bills:
Do you consider a savings account something you put money into and never take out (unless an emergency comes up) or something you take out of if your monthly bills go over your budget?

Re: Savings Account?

My bank does not charge us for different sub accounts so we automatically direct money to a variety of accounts. College savings fund, 401k, Checking, and Savings. I really dislike having to move money from savings to checking, but we plan for expenditures and when the item comes up then we will move the money from the savings to checking to cover the specific expense. We normally budget for utilities/mortgage/taxes/cc/insurance/student loans to be paid from checking. The reason for me to use savings money is for something other than a normal expense (i.e. new furniture or appliance).

Re: Savings Account?

In theory, I'd love if I'd never have to touch savings. But there are times where my budget doesn't account for things that might bring me over. Like, if our pay schedule doesn't allow us to pay a certain bill on time, I take the money from savings and replace it when I can. Or if we want to buy something expensive, we do our best to put it in our budget but will take out of savings if need be.

Re: Savings Account?

For now, we've been using our savings account to save money for our home purchase, and previously was used for saving for a home and using for bigger vacations. Once we close on the home, we'll then use it to have for emergency reasons and not use it unless we really have to - for those rainy days.

Re: Savings Account?

I consider a savings account the place to put away money for future, large expenses, whereas the monthly bills come out of my checking account. I try to keep enough in checking and keep track of my bills well enough that I don't have to dip into savings in order to cover them.

Savings Account?

we basically never touch our savings account, we pretend it doesn't exist

Savings Account?

We don't really use the money in our savings account. It's really for emergencies, big purchases, etc. We have had to dip into at times, but for the most part try not.

Re: Savings Account?

For me, it's like a cushion, a safety net of sorts so if an unexpected expense comes up there's money there to pay for it if the checking account falls short.

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Re: Savings Account?

Our savings is in an account that we never look at. It's for the future and "just in case". Everything we purchase comes out of our checking

Re: Savings Account?

once money goes into savings, it stays there forever.

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Re: Savings Account?

I posted on other thread about having several accounts. The largest one not used (one thing we do use it for) another account is for house repair things or unexpected bills. The one thing I will take out of the big account is a chunk to send to the mortgage once or twice a year. The interest rates are so low, it pays for me to take out and pay off our mortgage

2 kids

Message edited 10/11/2012 2:36:00 PM.

Savings Account?

I don't really ever touch the savings account. I act as if it does not exist.

Re: Savings Account?

Thanks everyone

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Does everyone have kids that have responded?

Savings Account?

no

Re: Savings Account?

I definitely use $$ from my saving account...my check goes in to checking, DH's goes into savings. But we need both our incomes to survive, so I take whatever I need from savings to cover our bills, and whatever is left over stays in the account.

ETA: We have 1 kid and another on the way.

ETA again: If we want to go something to our house (like we just converted to gas heat and installed a gas fireplace) that comes out of our savings as well.

Message edited 10/11/2012 2:05:36 PM.

Re: Savings Account?

I have multiple savings accounts and still need to open one more

this is how I do things

checking- pays bills

operation account- overflow for a 3 months worth of bills

house savings account- right now for a purchase- in the future for projects

taxes - I have to pay estimate quarterly

fun savings- for things like shopping and not fun things like brakes

emergency fund- 1 years worth of expenses never to be touched- this is a work in progress

I am self employed, single with no kids

this is how my finacial planner wanted to see it set up and I think it makes the most sense

once my emergency fund is complete- then I invest-

Message edited 10/11/2012 2:03:20 PM.

Re: Savings Account?

Re: Savings Account?

Re: Savings Account?

We have savings to be touched, and savings not to be touched. Each month we contribute to the following savings accounts--

- Long term savings (outside of 401K): not to be touched
- "Cushion" fund: for unexpected expenses like car repairs, a broken appliance. If it needs replenishing, we contribute to this for a few months
- Car savings
- Vacation savings

We are a single income family with 2 kids.

Re: Savings Account?

Re: Savings Account?