Comments on: The savings buckets http://www.bluntmoney.com/the-savings-buckets/ Thu, 20 Nov 2008 22:25:23 +0000 http://wordpress.org/?v=2.3.2 By: Tread Softly http://www.bluntmoney.com/the-savings-buckets/#comment-37925 Tread Softly Sat, 17 May 2008 04:05:53 +0000 http://www.bluntmoney.com/the-savings-buckets/#comment-37925 I have a hard time saving for anything that won't be spent in six months (savings or travel). Perhaps I'll start thinking in "bucket" terms to help me out. I have a hard time saving for anything that won’t be spent in six months (savings or travel). Perhaps I’ll start thinking in “bucket” terms to help me out.

]]> By: Debbie M http://www.bluntmoney.com/the-savings-buckets/#comment-37917 Debbie M Fri, 16 May 2008 21:16:12 +0000 http://www.bluntmoney.com/the-savings-buckets/#comment-37917 I also do the same thing. Here’s how our buckets compare: 1. Retirement – Like yours. 2. Emergencies – I just have a health bucket. I work for a state agency, so I don’t actually save for involuntary loss of employment. I also have health and disability insurance. 3. Repairs & replacements – I split this up into multiple buckets. I have an auto maintenance bucket, and auto replacement bucket, a housing repair bucket (which includes appliances as well as plumbing, roofing, etc.), and a home improvement bucket. 4. Mortgage – I don’t have one of these. I figure I can use my retirement or wants bucket for this later if I want to. 5. Escrow – I still let my lender do this. 6. Non-retirement investments - Nope. 7. Education – Nope (no child). 8. Wants – Mine for anything that’s so expensive I have to save up for it. Mine is also mostly for travel but sometimes furniture or electronics. Two things might be different. 1) I sometimes borrow from one bucket to pay for something when I run out of money in another bucket. When I find that one bucket is going negative too often, I re-do my budget to get it back on track. 2) I keep my retirement money in various retirement accounts, and my other money is split between a credit union savings account, an online savings account, a CD, and a couple of old I-bonds. I don’t have a notion that, for example, the car-replacement money is in the CD. I just keep track of the total and bucket subtotals separately. I really like knowing it's okay to spend a fair amount of money for various things without making it impossible to spend on other things later. And I like adding some to each bucket with each paycheck, regardless of how much is already there. It always surprises me, though, when I realize I should make a change (besides after a salary change). I recently had to increase the car maintenance bucket (even before gas prices rose), and I recently added the health bucket (really so that I could have a health emergency bucket) and the house renovation bucket (because I'm getting really jealous of people with dishwashers and clothes dryers and shaded back porches). I also do the same thing. Here’s how our buckets compare:

1. Retirement – Like yours.

2. Emergencies – I just have a health bucket. I work for a state agency, so I don’t actually save for involuntary loss of employment. I also have health and disability insurance.

3. Repairs & replacements – I split this up into multiple buckets. I have an auto maintenance bucket, and auto replacement bucket, a housing repair bucket (which includes appliances as well as plumbing, roofing, etc.), and a home improvement bucket.

4. Mortgage – I don’t have one of these. I figure I can use my retirement or wants bucket for this later if I want to.

5. Escrow – I still let my lender do this.

6. Non-retirement investments - Nope.

7. Education – Nope (no child).

8. Wants – Mine for anything that’s so expensive I have to save up for it. Mine is also mostly for travel but sometimes furniture or electronics.

Two things might be different. 1) I sometimes borrow from one bucket to pay for something when I run out of money in another bucket. When I find that one bucket is going negative too often, I re-do my budget to get it back on track. 2) I keep my retirement money in various retirement accounts, and my other money is split between a credit union savings account, an online savings account, a CD, and a couple of old I-bonds. I don’t have a notion that, for example, the car-replacement money is in the CD. I just keep track of the total and bucket subtotals separately.

I really like knowing it’s okay to spend a fair amount of money for various things without making it impossible to spend on other things later. And I like adding some to each bucket with each paycheck, regardless of how much is already there.

It always surprises me, though, when I realize I should make a change (besides after a salary change). I recently had to increase the car maintenance bucket (even before gas prices rose), and I recently added the health bucket (really so that I could have a health emergency bucket) and the house renovation bucket (because I’m getting really jealous of people with dishwashers and clothes dryers and shaded back porches).

]]> By: Melissa http://www.bluntmoney.com/the-savings-buckets/#comment-37912 Melissa Fri, 16 May 2008 16:16:22 +0000 http://www.bluntmoney.com/the-savings-buckets/#comment-37912 I do the same thing (with slightly different categories of course). It really helps with saving focus and peace of mind. I do the same thing (with slightly different categories of course). It really helps with saving focus and peace of mind.

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