Uhhh . . . You have how many savings accounts?

As of the time of this writing I have 7 savings accounts.  Why?  Because I’m the most undisciplined person I know.  Here’s what they’re for:

#1 is our Baby Emergency Fund.  My husband has a portion of his paycheck deposited directly into this account and we never “see” it.  I’m so excited that it will be fully funded in August of this year and we can check that off of our financial goals list.

#2 is called Summer Sinking Fund.  Since I only work 9 months out of the year I put a little bit in this fund every month to pay the bills during the months I’m not working.  I have a budgeted amount each month and then I put budget overages in there as well.  For example if I budget $100 for CenterPoint and the bill is only $50 the other $50 goes into the summer sinking fund.  My goal is usually to save about $4000 during the 9 months and whatever we don’t use goes straight to debt as soon as school starts and I start getting paychecks again.

#3 is called Collections.  We have a couple of accounts in collections that are not being paid.  I include the amount in my debt snowball but the money goes into an account and when we’re ready we will call and pay them off.  

#4 is called Car Insurance.  I’ve been paying our car insurance in installments forever but I get charged a payment fee every month.  If I pay it in full every 6 months there is no fee.  It’s not much but when you are on a journey to be an everyday millionaire every dollar needs to be going toward that goal instead of fees that are useless. So I put the equivalent of an insurance payment here every month and when the time comes pay the whole thing and start over.

#5 is called Reliant.  I am on a balanced billing program with our electric company.  I pay generally the same amount each month and at the end of the year if I’ve paid too much I get a credit and if I haven’t paid enough I write a check, well have my bank pay them.  I budget $350 a month for electricity.  Have I mentioned we live in Texas and it gets HOT in the summer.  The bill is not ever $350 because of balanced billing so I take what’s left and put it in this account for the end of the year.  If I get a credit, that money will go towards the debt snowball.  Everything leads back to the debt snowball.

#6 is called phone.  Those who know me know I need a new phone.  *sigh

#7 is for my Savings challenge.  I’m sure you’ve seen the savings challenge go around.  You put a dollar  in the account for every week of the year.  The first week you put in $1 then second week you put in $2 and so on.  I didn’t start mine until June so I’m doing the half year savings challenge.  This money is allocated to go to a trip when my son comes home.

Now the question will come up, “Why not just leave it all in one account and keep track of what’s in there?”  Again, I am the most undisciplined person I know and I’ll spend it if I see it.  That’s how I got into this situation in the first place.

I first heard about the idea of multiple savings accounts on YouTube:  HIs and Her money  This is the very first financial YouTube channel I watched and learned so much.  Check them out.

That’s why I have 7 Savings accounts.  So I can tell every dollar where to go and I don’t have to wonder at the end of the year or the beginning of summer how my bills are going to get paid.

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