Page 2 of 2 FirstFirst 12
Results 11 to 16 of 16

Thread: June Frugals

  1. #11
    Senior Member Tradd's Avatar
    Join Date
    Dec 2010
    Location
    The Suburban Midwest
    Posts
    7,587
    Dave Ramsey talks about sinking funds. If you pay $1200 year for car insurance, you set aside $100/month. It’s a budget line. It avoids the surprised. Do the same with every expense that’s not a regular expense. Do the same for Christmas, birthdays, vacation, etc.

    The budgeting he advocates is a zero based budget. You tell every dollar where it goes.

  2. #12
    Senior Member
    Join Date
    Dec 2010
    Posts
    6,360
    That's a good idea, rr. I think I may have to look in redesigning my "budget" sheet. There are a lot of things I account for "in my head" but not on paper. I think I need to address that really soon.
    To give pleasure to a single heart by a single act is better than a thousand heads bowing in prayer." Mahatma Gandhi
    Be nice whenever possible. It's always possible. HH Dalai Lama
    In a world where you can be anything - be kind. Unknown

  3. #13
    Senior Member
    Join Date
    Jan 2011
    Posts
    1,711
    We guess have a sort of "sinking fund" in the form of a second checking account at a separate bank (signed up for long ago when they offered $350 free cash for new accounts with auto-deposit). I calculated our large, recurring but non-monthly bills - RE taxes, house insurance, car insurance, pre-pay yearly propane purchase- and figured out how much we need a month to cover that, and tried to have auto deposits from our paychecks for that amount when we were working. It just so happens that my pitiful SS check and DH's even more pitiful actual retirement check covers that, plus a wee tad more, so those are auto-deposited into that account. Easy, out of "sight", and still very available for any true emergency. I did not know I was following Dave Ramsey's advice, lol!

  4. #14
    Senior Member rosarugosa's Avatar
    Join Date
    Dec 2010
    Location
    Eastern Massachusetts
    Posts
    8,266
    A sinking account fund is certainly another good way to accomplish the same thing. I always thought it was simpler to keep fewer accounts, but in some ways, a designated account might actually be simpler. I will have to give that one some thought. We do have a secondary checking account that isn't used much and could be repurposed.

  5. #15
    Senior Member Tradd's Avatar
    Join Date
    Dec 2010
    Location
    The Suburban Midwest
    Posts
    7,587
    Quote Originally Posted by rosarugosa View Post
    A sinking account fund is certainly another good way to accomplish the same thing. I always thought it was simpler to keep fewer accounts, but in some ways, a designated account might actually be simpler. I will have to give that one some thought. We do have a secondary checking account that isn't used much and could be repurposed.
    I will keep one savings account, but I have a notebook that has the individual line item amounts.

  6. #16
    Senior Member
    Join Date
    Dec 2010
    Posts
    6,360
    My check register is line by line in that every cc charge is written down so that when the bill comes in, I know the money is there to pay in full. Another thing I do is NOT register a lump sum in an account. For example, the checking account is balanced, but there is an extra $2000 (random amount for the example) in the account that is not registered in my check register. I just remember it when balancing against the account, itself. (hope that made sense - LOL) It helps if there is an emergency.
    To give pleasure to a single heart by a single act is better than a thousand heads bowing in prayer." Mahatma Gandhi
    Be nice whenever possible. It's always possible. HH Dalai Lama
    In a world where you can be anything - be kind. Unknown

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •