WHY do I make this so hard on myself!?!?!

**RuthNY** · 11-04-2005, 06:52 AM

I act like I've got this budgeting thing down pat but I think I've made it more difficult than it needs to be. I start out great with my plan then not two months later I pull the rug out from under myself.

I have two bank accounts. One free checking at a big bank. In this I keep money for my rent, utilities and spending money. (Ha that's a laugh, isn't it all spending money!?

) In my check register I keep two columns, one for the bills and the other for my spending (groc, hair, pet needs, you know, spending money.).

I also have a savings account with an attatched checking account. In this I have my 'so-called' Freedom account and my 'so-called' Emergency fund. I manage this account by breaking it down into mini accounts on a columnar pad. One column for each of the following...EF, Auto Maintenence, Medical, Clothing and Gifts. I keep the money in the savings till I need to write a check on it then I transfer online over to checking.

It seems so ideal. Like I have had a few medical co-pays and the money is in there, I just write the check and then transfer the money. I put it directly into the savings cuz that keeps my daily balance higher. It's not a lot but its something.

My problem is apparently I have no discipline or something cuz I get to a point where I am accumulating a good sum then I wipe it all out and then I start again. It's ridiculous!

My current situation is this. I have a 1/2 month's bills in my main checking account so that I am ahead on my bills. I like this idea, I divide my bills up by two (the number of checks per month). That way my payday has no surprises, same amount every payday goes to bills.

I have been accumulating money in my other account so I've got two months worth of deposits into each of the mini accounts and I have money into the EF. Things should be great, right?...WRONG.

I went spending crazy last month on my Discover, I owe $583 by the 12th. I never keep a balance and I don't intend to now. I also bought airline tickets for our trip to Fla next week. I have them on a 0% cc till Dec. 2nd, then I'll pay that one off. Also there's the trip to Fl! We're leaving on the 12th. I am going to need spending money. I didn't plan for this. It is a great opportunity, we don't pay lodging and we're going with friends so it's going to be a blast, I wouldn't miss it. I'm buying the tickets because BF bought the tickets for our trip to Montana, so I'm trying to be equal.

So, anyway. I have the money. BUT if I pay this off I'll once again have to start all over again. GAH! I should just pay these things and be glad I have the money to do it, but I've started all over again so many times it's insane! There's always something!!! HOW do I finally get to a plan and STICK WITH IT?!?!

I told BF that after this trip we need to settle down and I need to put money away for a house, and I could, but I know something else will get in the way.

On a side note: I AM having the best time I've ever had, so I do NOT regret the money I've spent, but it's time I get this starting over again under control!

Have I just tried to put too much money away? I don't know, I just know somethings not working. Any suggestions???

Sorry so long, no short way to say all of this...

**Darlene** · 11-04-2005, 07:15 AM

I'd go nuts with so many accounts and transfering of money. I'd have one savings and one checking account. All bills get paid out of the checking and whatever ammount you decide goes into savings. You don't touch savings unless a real emergency. You put a nice picture of your dream house on your checkbook & wrap your credit card up in one too so you are reminded what you are saving for.
You can do this party girl.

**RuthNY** · 11-04-2005, 08:16 AM

See, that confuses me because I'm trying to follow Mary Hunt's idea of a freedom account. It does seem wrong in some ways tho because these figures I put into the catagories of medical or auto they are just 'made up' amounts.

Right now, if I go to my Freedom account I have $400 Auto, $165 medical, nothing in clothing cuz I bought a couple items, and $125 in gifts. What ARE those #s?!?! I like the idea of having money in case my car breaks down but really, how much DO I need? And, isn't that supposed to come out of the EF?

Geesh this confuses me to no end.

**sanderson76** · 11-04-2005, 08:20 AM

I agree..all the accounts would make me crazy. I have 1 checking and 3 savings, however one savings is a joint saving for me and DH. the other one only has the $25 that it takes to keep it open. It isn't optional at the credit union..you have to have a savings all the time if you want a checking. and i recently opened one on ING..i did this so that I can have money removed before I see it and it is harded to get to than my regular joint savings

**sanderson76** · 11-04-2005, 08:21 AM

You can do this!!

**Hollyhandi** · 11-04-2005, 09:16 AM

To me in my way of thinking an EF would be my freedom account.
At the moment I have neither

**Michelle** · 11-04-2005, 09:32 AM

Originally posted by Darlene
I'd go nuts with so many accounts and transfering of money. I'd have one savings and one checking account. All bills get paid out of the checking and whatever ammount you decide goes into savings. You don't touch savings unless a real emergency.

**Scattymum** · 11-04-2005, 09:42 AM

good luck, you can do it1

**Michele Annette** · 11-04-2005, 10:44 AM

Ruth, in a sentence you wrote...

I have the money. BUT...

The "BUT" should be the answer your looking for. You have money in your account, BUT if you spend it, you won't. You have money in there for necessities and emergencies at the moment, BUT then you spend it on something you don't "need" to live then there is nothing left for the emergencies. I understand you want to be fair to your BF and that it is important to have spending money and fun times. When you get to the point of wanting to spend think about if you drove somewhere and you blew out your tire and how much money you would need for a tow, a new tire, maybe a new wheel if you dent it badly. Think of all the examples you can come up with and how secure you will feel with a bit of extra money in your account. You can do it Ruth. Start again and keep going. Spend a little bit of money on yourself so you don't feel as tempted in the future.

I am also all about visiting good friends. Maybe next time they can come visit you.

**mfedor** · 11-04-2005, 11:07 AM

The way it works for us is we have three accounts. A joint checking and savings, and I have my own checking. My checking is my Freedom account. We use quicken to create savings buckets. For monthly bills. For instance, out of each pay period half the mortagage comes out half the utilities, half of monthly savings for gas, real estate taxes etc... While the actual money doesn't move accounts for these types of things it doesn't show up as actual available spending cash. Then so much goes into savings. Once our savings account grows to a certain amount then we roll that into a 6 or 12 mos CD. Now we have a CD that comes due each month of the year so if we ever have an emergency - there is money there but not easily touchable. The nice thing about that is we are really working alot harder on controlling our everyday expenses to keep this momentum going.

HTH -

**Valerie in WA** · 11-05-2005, 02:54 PM

Originally posted by RuthNY
See, that confuses me because I'm trying to follow Mary Hunt's idea of a freedom account. It does seem wrong in some ways tho because these figures I put into the catagories of medical or auto they are just 'made up' amounts.

Right now, if I go to my Freedom account I have $400 Auto, $165 medical, nothing in clothing cuz I bought a couple items, and $125 in gifts. What ARE those #s?!?! I like the idea of having money in case my car breaks down but really, how much DO I need? And, isn't that supposed to come out of the EF?

Geesh this confuses me to no end.

Okay, I've been thinking about this. You have an advantage in being single - no else to complicate matters!

Here's what I would do in your shoes:

1. Calculate the average amount of money per year that you spend on your FA items. For instance if you take a medication regularly, include 12 Rx co-pays, but if you only go to the doctor once a year, only include 2 office visit co-pays. Divide that yearly amount by 12 and put that much into your FA each month. If you are paid every two weeks, you could divide the amount by 26 and deposit it every time you're paid. Do the same for necessary clothing and routine auto maintenance.

This account is for anticipated but irregularly occuring expenses.

2. Now, onto your EF. This fund is for unanticipated expenses, like vandalism to your car or breaking a leg and having to pay an ER co-pay or 20% of orthopedic surgery. Only you can decide how much money should be in here. If you are in good health, I might suggest $1000 as an initial goal. If your health is questionable or you work in an industry that is not solid, you'll need more. After all debt is paid off, experts recommend having an EF equal to 3 months' typical expenses.

3. If you can afford to and if you so desire, you can also set up a "Fun Account" right along side your "Freedom Account." Again, calculate the amount you wish to spend/save annually. You might
decided that you can save $50/ month toward recreational travelling. So it's January and you only have $100 bucks in there, you can't go anywhere. You might also want to set aside 'fun money' for unnecessary clothing or other things you enjoy, but don't need.

LMK if this makes sense.

**RuthNY** · 11-07-2005, 07:32 AM

Valerie, that all makes wonderful sense! Thanks for taking the time and thinking about such a great response. I will pledge to plan a budget with more of this thought. I think I'll just have to close my eyes and pray I come out alright at the end of December and Start a new budget come Jan.