paid off cash reserve

[Zoe Girl]

Oh dang, I did it. I will say it was with a lump sum that I got from child support and not little bits of money but it doesn't matter. I have been working on getting spending down so I wasn't so dependent, I got a lump sum and paid a large car repair, helped my daughter with a car repair, put money into an emergency fund, and then realized I could just pay off the cash reserve/overdraft. Feeling a weight off, now I am wondering about dropping the overdraft protection down to a small amount like $100 or just drop it. I have tended to have it maxed almost all the time anyway so it isn't much help. I could put money into a saving account at the same bank (right now my savings are at another bank) so I would have access to transferring funds in case of emergency. I am leaning that way,

Whew

[Lainey]

It's always a relief to get ahead on things like that. Smart spending. Seems like keeping the overdraft protection is still a good idea though.

[rodeosweetheart]

Definitely like the idea of bringing the overdraft down but linking your savings for the overdraft protection, makes total sense!

[pcooley]

That must be a great feeling. Way to go!

[Zoe Girl]

I am happy days later, I only have student loan debt and nothing else now!

I am liking the savings account idea more and more as well. I don't go into overdraft by mistake, I know that I am very low in my account, which means I can make a transfer (unlike years ago when it was true, I totally forgot about that check, overdraft).

Meanwhile this means I made the choice to not replace my personal laptop or buy a couch until my emergency fund is increased, not easy this time of year!

[ToomuchStuff]

Call me confused, but I thought a cash reserve was the emergency fund (or maybe some kind of Fun money that you have been saving for example the change you put in a jar for holiday or travel money)?

Overdraft protection, I have a better handle on. What I know of it, is (at least my CU), won't allow you to have a checking account, without a savings account, and there is a two dollar charge per check to transfer the money from your savings to your checking if you write one for more then is in your checking (and your savings has it in). I've done this once in my life, when I mailed the check with the carbon and didn't get a check recorded. I changed to recording my checks when I write them, and since the only time I have made a math error, it has been in my favor.
So, I guess the question is, do you balance your checkbook? Do you commit check fraud? (legal definition of writing a check that you don't have the money to cover) Not sure I understand what is your overdraft protection, or why wouldn't you just keep the money in an associated savings account? From what I have heard about overdraft protection from a bank (and those that use it, that I know, consistently pay their bills late, even though they believe the due date, is a GENERAL term), it is a good money maker for the bank, not the user.

[Zoe Girl]

I may not have all my terms exactly correct here, I have had an overdraft protection that was charged up on and off the last few years. I paid it 100% off! I needed to have some money in savings that was not evaporating in order to do this. I also have a savings account at a credit union and no savings at the bank with my checking account. I have some money in there but not as much as I want. I don't commit check fraud but I do make mistakes, and have emergencies, balance my checkbook but not daily. I did work in a bank so I understand that side of it well. Over the years they have called these products cash reserve (as in the negative) and overdraft protection.

I am just glad that I have been working hard to build back from many set-backs, so I am not sure how to respond to your post.

[ToomuchStuff]

I didn't know you could have a checking without savings at a bank, unless you were some kind of business. Learn something new everyday. Sounds like their overdraft protection is some kind of loan/fee thing. Now that you have an emergency fund, maybe you will get a bit better breathing room (always thought that was a joke about how Murphy stays away, but I think our perspectives change once we have that). I understand math errors happen, heck a relative that works at a bank, I don't trust without a calculator, as I have seen what they do on paper. In my grandparents and parents day, they just kept an amount in the checkbook, that wasn't listed (parents recommended starting at $100 and working it up to $500), but the OP I have used once, cost me $2, and kept the money in savings (although not much interest these days), rather then a zero interest checking. Check fraud is a whole different ballgame, and unfortunately, I have known a few that have committed it and see nothing wrong.
I do recommend balancing the checkbook, everytime you write a check, and don't forget to reconcile it at the end of the month. If you do what so many others do now (online banking), it is pretty easy as you type in the check, the math is shown back to you. I still bank in person though (dealt with some others computer issues, not worth it to me).
I don't know if you have all the terms (don't know your bank), but now I get the gist, thanks.

[Zoe Girl]

Thanks TMS, a large part of all of this life organization is that I am always in a rush. It happens despite spending a good amount of time trying to prevent and avoid it. Not like when my kids were my primary responsibility however each day I go into work with the sense of what I can get done and it just fills up 10-12 hours easily, every day.
Like I check my email, then things need to follow up, and it takes longer. I check the bank balance and then see a bill is due, then the password needs to be changed periodically and I am not sure about paying it since the car is making a noise. I am sure plenty of other people have the same thing, If I a lot more money then I would be buying a couch and a new computer after all.

I saw that the bank has a budgeting program now, I have had one online that didn't work so well, but this would be much easier if I am pulling the transactions from my checking and just identifying categories.