Envelope system for savings?
Results 1 to 11 of 11
  1. #1
    Registered User Raiquee's Avatar
    Join Date
    May 2012
    Location
    Wisconsin
    Age
    34
    Posts
    866
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default Envelope system for savings?

    Hey everyone.

    Wondering if anyone uses an envelope system for savings, but with actual savings accounts? There are tons of things I want to save for (kids college x3, next car, car repairs, home repairs, land up north, health fund, etc) but I don't that amount of cash sitting in a safe. I want to do it by savings accounts, but I would prefer all individual accounts like an envelope system.

    Can you even open this many accounts? I would like to have them all hooked up to my checking for easy cash flow dividing. Right now we have one hooked up to our checking that is our EF and home down payment nest egg. We also have another at a credit union for Christmas, and another at another credit union for 3-6 months our income.

    Let me know what works for you. I would feel kinda embarrassed I feel wanting to open a bunch more savings accounts. Does anyone else do this and how does it work for you?
    Step 2
    Will update this when I have time

    Food grown for my family so far: 37lbs 1 oz!

  2. #2
    Registered User reader99's Avatar
    Join Date
    Jul 2012
    Location
    Florida
    Age
    64
    Posts
    73
    Post Thanks / WTG / Hug
    Rep Power
    8

    Default

    I used one savings account and kept a spreadsheet of how much of the money was for each category.

  3. #3
    Registered User Toffeekit's Avatar
    Join Date
    Dec 2012
    Location
    north east England (UK)
    Age
    72
    Posts
    285
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    Hi there: rather like Reader99, I have just one active savings account, linked directly to my current account (into which all my regular income goes) but I keep pen-and-paper records of how much is in each individual "virtual" savings account within that pot.

    This means that there is more sitting in one place and with our system, that means the bank pays a teensy-weensy bit more interest than it would on a few smaller accounts: and every little helps.

    This isn't my only savings account: I have various sums deposited in various bonds and such like, but they are not to be touched except in dire emergency (which, thankfully, I haven't had for quite a while). This all-in-one account is for money I can set aside, to be used for specific purposes later on.

  4. Remove Advertisements
    FrugalVillage.com
    Advertisements
     

  5. #4
    Registered User photogal06's Avatar
    Join Date
    Oct 2008
    Location
    Halfway between the Wolverines and the Spartans
    Posts
    432
    Post Thanks / WTG / Hug
    Rep Power
    13

    Default

    I used to do that with ING, which is now Capital One 360. I had around 6 savings accounts earmarked for different things, and I could easily transfer between accounts there or between each account and my checking account at my regular bank. Eventually I got tired of moving money, so I collapsed them into one account and just keep track of the individual categories on my spreadsheets.

    Capital One 360 usually offers new account bonuses around holidays for new customers, so if you're not already a customer and want to try them out, I'd wait for Labor Day and see if they have any specials.

  6. #5
    Registered User Raiquee's Avatar
    Join Date
    May 2012
    Location
    Wisconsin
    Age
    34
    Posts
    866
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    Photogal) Hey thanks! I will keep a look out

    I have tried the spreadsheet method for me, and it was too easy to dip into others savings. Which isn't a huge deal, but I know I can be stronger than this. I also need to get the kids college funds into 529s I believe they are called. Or something similar.

    Plus i'm a little OCD when it comes to our finances. lol
    Step 2
    Will update this when I have time

    Food grown for my family so far: 37lbs 1 oz!

  7. #6
    Registered User
    Join Date
    Jul 2013
    Location
    New Hampshire
    Age
    50
    Posts
    91
    Post Thanks / WTG / Hug
    Rep Power
    7

    Default

    I had everything in one money market account. I tracked it all in a three collumn ledger book and that was my "envelopes" I had separate sections for each category and treated each like a check book ledger. If you added the balances in each category... the total was the total in my money market account.

    Edited to add that I used post-it tabs to separate and lable the categories.
    BS#1 Done
    BS#2 Done
    BS#3 Done
    BS#4 Ongoing
    BS#5 Done
    BS#6 Done
    BS#7 We are here!

  8. #7
    Registered User Nadders11's Avatar
    Join Date
    Dec 2011
    Location
    Calgary, Alberta
    Age
    36
    Posts
    694
    Post Thanks / WTG / Hug
    Rep Power
    11

    Default

    Some banks let you virtually divide your account into categories. I don't know which do, though.

    I use a savings account hooked my chequing for sinking funds, with a spreadsheet to keep track of what I have and what I need. My FFEF is through a tax free savings account. I can send money there, but to get it out I need to go to the bank. I can have multiple tfsa's throuh my bank account.

  9. #8
    Registered User
    Join Date
    Oct 2012
    Location
    Australia
    Posts
    346
    Post Thanks / WTG / Hug
    Rep Power
    10

    Default

    I have about 6 accounts linked to my everyday account. It works great I have been thinking of getting a couple more to save for other items.

  10. #9
    Registered User Raiquee's Avatar
    Join Date
    May 2012
    Location
    Wisconsin
    Age
    34
    Posts
    866
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    I think I'm going to go with the Capital one 360 program. It lets you open 25 accounts" and has them all linked to a primary checking account. It also appears I can keep my regular checking account, which is a big bonus. I will keep the kohler savings for our 3-6 months of income. I will keep the direct linked savings as our emergency fund and home nest egg (as that will be gone next year), and set up seperate accounts for things. Now I gotta make a list of what.
    Step 2
    Will update this when I have time

    Food grown for my family so far: 37lbs 1 oz!

  11. #10
    Registered User MissSeetonFan's Avatar
    Join Date
    Jun 2010
    Location
    Provo, UT
    Posts
    419
    Post Thanks / WTG / Hug
    Rep Power
    12

    Default

    The only problem with savings accounts linked to a checking or to each other is that you are limited to 6 free transfers between accounts a month. It doesn't matter which direction you transfer either. We just hit the limit yesterday for this month. I don't remember what the fees are. They may be different for each bank/CU. I can't remember if this is part of the Dodd-Frank bill or Obamacare but it is a law that went into effect in the last two years.

  12. #11
    Registered User colene_me's Avatar
    Join Date
    May 2014
    Posts
    23
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    I just have two accounts, one for the common expenses and the other one for emergencies. I also monitoring my expenses and will not spend over what we can earn.

Similar Threads

  1. Envelope System Anyone????
    By Karen1 in forum Envelope system
    Replies: 27
    Last Post: 09-18-2010, 10:08 AM
  2. Envelope system - not
    By Russ in forum Envelope system
    Replies: 51
    Last Post: 07-31-2008, 09:53 AM
  3. Envelope system?????
    By yonksgirl in forum Envelope system
    Replies: 30
    Last Post: 03-18-2008, 08:59 AM
  4. Envelope system
    By Jaded in forum Envelope system
    Replies: 5
    Last Post: 09-17-2007, 07:17 PM
  5. Envelope System?????
    By SheriH. in forum Envelope system
    Replies: 6
    Last Post: 05-17-2006, 10:26 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •