Is this a good plan?

**2ndGenGranola** · 04-23-2010, 01:47 PM

I am going to start teaching music lessons again. I was thinking about opening up a separate checking account and aside from paying my business expenses, I should just "forget" the money is in there. That way we can build up and emergency fund and possibly even have down payment money ready for our next vehicle (need coming soon).

**Russ** · 04-23-2010, 02:08 PM

A good plan is one that works for you, however, I like your idea.

I guess you have to ask yourself this: Are you disciplined enough to "forget it?" Then answer yourself, truthfully.

**frugalwarrior2** · 04-23-2010, 04:09 PM

I like it. Thats what I had to do when I worked.That way it didn't accidentally get spent on piddy junk.

**2ndGenGranola** · 04-23-2010, 04:10 PM

Originally Posted by Russ

I guess you have to ask yourself this: Are you disciplined enough to "forget it?" Then answer yourself, truthfully.

Me-yes, hubby-no. When I was single I had a nice savings. DH cannot keep money in his pocket.

That is kind of why we are thinking of setting it up this way.

The last time we had "mixed" funds, DH had fun and left me with some big bills. It is not that he is evil, he is severely math deficient. We discussed that since he is not at home during business hours, he will not know how many students I have. If he doesn't know how many students I have, he will not know if I am making $50 a month or $1,000 a month. If we don't change his numbers on him, he can survive and would be thrilled with an occasional surprise (downpayment, payoff, dinner out...etc)

**Vanilla** · 04-23-2010, 06:09 PM

That's a great idea, apart from setting up a 'hide-way' fund account, it is also good for accounting & tax purposes. (you probably know already) Use that account for business related expenses only, don't mix up business funds & personal funds, you can write a check to yourself as 'pay-check' to your personal account first, then use that for personal use.

Good luck & wishing you many students.

**nodmicks** · 04-23-2010, 07:10 PM

Great idea!

**Siebrie** · 04-25-2010, 03:30 PM

Your dh is math deficient when it comes to spending, but not when it comes to calculating your income? Maybe you should start a second secret account where you stash some of the household money, just in case.....

**itlw8** · 04-26-2010, 12:49 PM

good idea and yes do remember self employment taxes are higher to allow for that. can you set up the music room so it is 100 % business that will give you lots of deductions.