My New Way of Saving, And A Surprise Gift

Clearly a big reason we are trying to live frugally is to build up some savings for emergencies.  When something unexpected crops up, I’d much rather have the savings already in the bank to pay for it than to have to put it on a credit card and pay interest on it.  Just simple economics, right?

So in our quest to find a workable budget for us, we knew we had to do something differently than we had in the past.  In the past, every penny we could save went into a general savings pile for “emergencies”, most of which we spent on things that were nothing of the sort.  I think we finally realized that budgeting is like everything else in life.  Be good {be frugal} most of the time, but allow yourself {some money} to live a little.  Obviously this would not be the case if we were behind on bills or unable to pay certain bills, but we’re making ends meet with a tiny bit leftover.  The question then became… what to do with the tiny bit leftover.

A blogger I was reading mentioned the Capital One 360 savings accounts.  I had been kicking around the idea of getting an online savings account, and when I read her post I thought I’d go check it out.  After reading about it and talking with Hubs, we decided it was just what we needed to save money in a reasonable way.

First, let me say, I am NOT in any way financially benefiting from this recommendation.  No kick backs for me.  I’m only sharing it because I think it will work for us, and maybe for some of you too.  So the Capital One 360 account is an online savings account, hence no way for me to go clear it out and go straight to JoAnn and blow it all.  I wouldn’t do this, of course, but you get the idea of why online accounts are a good way to go.

The part that really sold me on the 360 account, as opposed to some other banks that also offer online savings accounts, is that you can subdivide your main account into as many other sub accounts as you would like.  This was exactly what we were looking for.  So I signed us up, and made our initial deposit.  Fair warning: They hold the initial deposit for 10 business days before it will show that it is available for use.

Now the only problem was to decide what we wanted to save for, so we could make accounts.  The biggest and most important account is simply the “Emergency Fund”.  Pretty self explanatory.  Hubs and I talked about it and decided on 2 other accounts for now.  One is an account where my bestie and I are saving money to fly me to North Dakota to visit her {and write a column in the actual newspaper office!}.  The other one is some savings for my mom and step dad to come visit.  We’re hoping they will get to come visit in July, and I wanted to save up some money to take them out to dinner and do a few fun things around here.  Most other things we want we can absorb into monthly expenditures and won’t need a savings account for.  Or at least that’s the situation at the moment, but it could change if Hubs decides on something he wants to save for.

The last remaining problem is to figure out when and how to fund these accounts.  We’ve essentially decided to go the 15% route.  The amount of money we put in savings every month varies by the amount of money we are able to save from our budgeted funds.  Whatever amount we deposit each month, 15% will go toward visiting my bestie and 15% will go toward my mom and stepdad’s visit.  This way we’re still funding our emergency fund with the majority of our savings, but putting a little aside for other savings as well.  If Hubs decides on something he wants to save for, we’ll drop it to 10% in each of the 3 accounts per month.

Okay, after this really long and drawn out post regarding our savings, I have a last point to make.  And that point is that you don’t have to save in a 360 account, or any other account.  It can be as simple as getting a few envelopes, writing your savings goals on them, and putting the money in them as you have it to save.  {The only disadvantage would be the ease with which you could still get at your money.}  It doesn’t matter HOW you’re saving the money, it just matters that you save it.  And, unless you are in dire financial straits, save a little bit for something fun, too.  Knowing you are saving for something you want, and watching the savings grow, will help counteract the feelings of deprivation or jealousy about the money you aren’t spending right now.  That’s how it works for me, at least!

And for the second part of this evening’s post…

In a previous post I talked about having discovered the concept of waiting for things I want.  I don’t necessarily mean this in a save-up-for-it kind of way, but rather in a waiting-for-a-good-deal way.  This does NOT come naturally to me.  It’s my nature to want things RIGHT NOW, even if I could find a better deal somewhere else or at a later time.  Embarrassing to admit but true.

Since I’ve been building up my crafting supplies and my craft room, naturally there are things I want.  Things I WANT but don’t NEED.  One of them was a thread rack.  I had found several I liked, but they were pricey and like I said, I didn’t NEED it.  I received a package from my mom yesterday, and this was in it.

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My mom did a lot of sewing when I was young, and my dad made this thread rack for her.  She never sews anymore, other than hemming something or making a repair, so she sent it to me.  I was very excited to receive it, since I had been wanting one and because this is the one my mom used when I was a child. Even though this wasn’t exactly finding a good deal somewhere, it still reinforces the principle that waiting is sometimes the best option!


1 Comment

  1. you have done good. I have been meaning to have a separate account myself for my tiny “fun fund”, which is the money I can usually spare out of my weekly allowance. I do not have a huge amount but felt like if I see it on an account, it would motivate me to save more from my weekly allowance. I after careful consideration I chickened out to open a new account for a small amount of money (thinking that it actually would increase the complexity in my life). I congratulate you for not being like me and seeing your savings in a new account 🙂

    Liked by 1 person

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