Submitted by lubricatedwhale97 t3_11bggt4 in LifeProTips
I'm a bit of a budgeter and responsible for the finances at home but I haven't been able to come up with a decent way to factor in semi reoccurring large expenses (cars, equipment, furniture etc) .
Interested how other people save for these types of things.
I like this one
We have a joint account for bills and both my wife and myself have a standing order to transfer a set amount of our wages into it every month. We calculated the rough amount needed to cover monthly bills, then added another 20% on top. This money slowly builds up and provides an extra pot of cash for unforeseen large purchases, the occasional holiday etc. Once that account gets to a certain level, we transfer a chunk into a savings account and this has also grown enough to cover us in case of job loss etc (or really big purchases). It works well for us.
It’s not that hard. I put away all the left over money at the end of each month into a separate account where it slowly accumulates over time. When I need to buy a new car, I transfer the money into my Main account and then just buy the car with it.
This is the way.
Determine when you need another car, washing machine, etc.
Figure out how much money you need to save each month to hit that goal.
Put money in the sinking fund each month.
….”leftover… money,,,,”??? I mean, I understand each word on its own, but…
Safety net of 3-6 months of living expenses. This is usually in case you become unemployed but when you have large purchases or unexpected bills you use that stockpile and then refill it.
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>What's the best way to save
#stop spending
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No you’re not a “bit if a budgeter” if you are baffled by the concept of a savings account that can be used for larger, infrequent purchases if need be.
I have a sinking bills account, 6 month emergency fund, additional saving account towards goal of homeownership etc
It's not baffling, there's just a 1000 ways to approach this and I'm interested in hearing them from others in case they have a better system
You have all that but still can’t figure it out? LMAO
LPT just for you - floating around on LPT Requests to just shit on people is a dh move and the makings of a very sad life. Enjoy it.
SafeItchy6145 t1_j9z9m62 wrote
A trick I pull on myself….most employers allow you paycheck to send money to several different accounts. Send money out of your paycheck directly to an account that is harder to draw money from. That little bit of separation works for me.