One of my May goals was to actually put money into savings. I used to be very good about this, but lately, I’ve noticed myself slacking off and not transferring money to my savings accounts.
Yes, I said savings accounts. As in plural. I have 6 saving accounts.
Before you start thinking I’m nuts, let me explain. I use both my regular bank and ING Direct for my savings accounts. I have the one standard savings account that came with my checking account and 5 accounts with ING.
I LOVE ING. I cannot say that enough. Love love love them. One, it’s free, two, they give wicked interest (1% which is so.much.higher. than what my regular bank is giving me), three, it’s super easy to use – open up an account, transfer money, start saving and collecting interest – and, four, it’s very secure. They ask tons of security questions and I’ve never felt like anyone has any chance of getting their hands on my information or my money.
The only downside about ING is that it can take up to two business days for your money to appear in your accounts, no matter if you are transferring from your regular bank account to ING or vice versa. That’s bad if you need to get your hands on money quickly, but good if you have a problem with impulse spending. Since you can’t access the money right away, it makes it harder to spend. I’ve never had a problem getting my money when I need it, it’s just a matter of thinking ahead or paying myself back.
Interested in trying ING? Email me at lifelovelibrarianship (at) gmail (dot) com and I’ll send you a link that gets you $25 just for opening an account and depositing at least $250. I get $10 for the referral (bonus!), but really, I just love ING so much I would recommend them even if I wasn’t getting anything for it.
Okay, so enough about how much I love ING. Back to the original questions about why I have so many savings accounts and what exactly I am saving for.
I have the one regular savings account associated with my checking account for true emergency purposes. Like something so urgent that I don’t have time to wait for ING to get me the money and I either can’t or don’t want to charge it. It also serves as my overdraft protection. (Not that I’ve ever needed that. Ahem.) I keep a set amount of money in there and just let it sit. It’s not collecting much interest, but if I need it, I know it’s there and it gives me a certain peace of mind.
Like I said I have 5 ING accounts. Well, there more like sub accounts because ING gives you one customer/log in number and you can have up to 10 accounts tied to it. Currently my five accounts are:
My Emergency Fund – I reached this savings goal at the beginning of 2011 (yay me!) and it’s the suggested 6 months of living expenses. I had Mint.com calculate how much I need to save based on what I was currently spending and then I saved that much. Since I’ve met the goal, the money is just sitting their collecting interest and I’m praying that I never have to use it.
House Money – This is the fund where I save for anything related to my house. New furniture, new appliances, redecorating expenses, repairs, any thing that might come up when you own a house. I don’t have a limit on it because I”m not anticipating needing anything for a while, nor do I know how much I’ll end up needing, but you never know and I want to be prepared without having to dip into my emergency fund.
Car Fund – I was fortunate that my parents bought me a brand new car for college graduation and it’s still in excellent shape. However, it won’t last forever and I would like to be able to pay cash for a new car when I need it. I started a new car fund now because I’m a slow saver and it might take me a while to save up enough for a new car. This is also the account I’ll use when I need major car repairs. For example, I need new tires soon and that money will come out of this account instead of my regular money or my emergency fund.
Vacation Fund – I would really like to be able to take an awesome trip one day without having to worry about money. I have some ideas on where I want to go and how much I’ll need, but I don’t have a date in mind. So I’m just collecting money until I figure out some more details.
Investment Fund – My dad is a financial planner and handles all of my investments. The money I currently have invested is money he invested for me while I was growing up, but I would like to be able to add to that so I can start saving for my future. I need more than just a few hundred dollars to really get started in investing, so I’m saving up until I have enough to actually do something with.
So that’s what I’m saving for now. But that’s not always what I’m going to be saving for. One day, all of those accounts will be maxed out and goals completed so I’ll need new goals. I have a few things in mind including:
Retirement – I should be thinking about my future right?
Baby fund – I plan on having a baby by the time I’m 30 whether I’m married or not, and babies cost money. Best to be prepared!
New house – I already own a house, but I’m not going to want to stay there forever, and I’m sure whatever I buy next will be more expensive than what I get for my house, plus all the new furniture, decorating, moving, etc will cost money, so again, best to be prepared.
So that’s my savings plan, for now anyway. Do you have a savings plan? What are you saving for?