Do you compartmentalize your savings? If so, how do you do it?

in order of priority generally...

work 457 is first compartment
work HSA is second
roth ira is third
New auto is fourth
running balance in checking is fifth
taxable investments is sixth

this seems to work pretty good so far.

quote:

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Not a MT expert, but I do for the most part. I have a larger rainy day fund account at a credit union then I have a series of sinking fund/savings accounts through online banks that get funded through each paycheck automatically. New Car Savings Christmas Vacation Car Maintenance Insurance Some may view these as just expenses but if they are irregular expenses only occurring a few times in a given year, I set up an ongoing savings account for it.

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I do something very similar. I don't escrow so annual costs like taxes and insurance go into my savings and then I pay at end of year. I basically have 1 main savings account and then I maintain a spreadsheet that breaks out what the balance is intended for:

Insurance and taxes in home
Travel fund (though don't really get to fund much any more with 2 little ones)
Misc car/house expenses (for when shite happens)
New car
Baby needs (clothes, cribs/beds, furniture, etc)
Remaining general savings

I distribute certain amounts each month to each fund, and just track on a spreadsheet.

My wife and I do this. The wife isn't as financially astute as I am so it helps her understand the purpose of saving. It works for us.

Emergency
Vacation
Car (for new car purchases)
College savings
Tuition (I pay tuition annually, and contribute to the fund throughout the year)

I have four seperate savings accounts, each of which draws weekly from my checking account.

Vacation
Rainy Day
Kids expenses
Future expenses


Two with Ally bank, two with my bank. Not counting my IRA.

I don't have my own kids yet so that one only gets $10 a week, while vacation gets $100 a week.