It there a Savings Account to put money into different categories?

Question

If I'm putting money towards saving for different things at a time - like car repairs, house stuff, vacation, gifts - is there a checking account that can split it up into these different categories, or should I open a separate account for each one?

I'm doing the Dave Ramsey Financial Peace University, and currently have all my savings in one big account where nothing is split up. It would make it easier for me if I had a way of seeing how much was in each category.

Answer 1

I am an advocate of having separate accounts for separate goals. I have at least 4 different savings accounts. It works to keep the money separate and even use separate banks. Keep you long term projects at a different bank from your cash flow bank accounts so that you are not tempted to plunder them when you want some cash for stuff you really don't need.

Answer 2

All the money goes into the checking account. Then you make a spreadsheet showing each the amount for each category. The total of the amounts in each category should not exceed the total in your checking account.



There are some items which are a bit harder to budget. For example, you pay for homeowner's or renter's insurance once a year. Take the bill divide it by 12, and add it to your expenses monthly as an accrued item. Some expenses are unpredictable. For example, you know that your car will eventually need an expensive repair, but you don't know when it will happen. Go through your check register for the last 24 months. Add up all the unexpected items and divide by 24. Then enter that amount on your budget each month.



Here are some categories to consider:

-----------------------------

INCOME:

Wages and Bonuses

Interest Income

Investment Income

Miscellaneous Income

Income Subtotal

INCOME TAXES WITHHELD:

Federal Income Tax

State and Local Income Tax

Social Security/Medicare Tax

Income Taxes Subtotal

Spendable Income

EXPENSES:

HOME:

Mortgage or Rent

Homeowners/Renters Insurance (actual amount paid)

Property Taxes (actual amount paid)

Home Repairs/Maintenance/HOA Dues

Home Improvements

UTILITIES:

Electricity

Water and Sewer

Natural Gas or Oil

Telephone (Land Line, Cell)

FOOD:

Groceries

Eating Out, Lunches, Snacks

FAMILY OBLIGATIONS:

Child Support/Alimony

Day Care, Babysitting

HEALTH AND MEDICAL:

Insurance (medical,dental,vision)

Out-of-Pocket Medical Expenses

Fitness (Yoga,Massage,Gym)

TRANSPORTATION:

Car Payments

Gasoline/Oil

Auto Repairs/Maintenance/Fees

Auto Insurance

Other (tolls, bus, subway, taxi)

DEBT PAYMENTS:

Credit Cards

Student Loans

Other Loans

ENTERTAINMENT/RECREATION:

Cable TV/Videos/Movies

Computer Expense

Hobbies

Subscriptions and Dues

Vacations

PETS:

Food

Grooming, Boarding, Vet

CLOTHING:

INVESTMENTS AND SAVINGS:

401(K)or IRA

Stocks/Bonds/Mutual Funds

College Fund

Savings

Emergency Fund

MISCELLANEOUS:

Toiletries, Household Products

Gifts/Donations

Grooming (Hair, Make-up, Other)

Miscellaneous Expense

Total Investments and Expenses

Surplus/Shortage (Spendable income



If you can get a hold of Quicken, it will make your job a lot easier. You might also consider getting a book at your local public library called Bookkeeping for Dummies by Lita Epstein. Please don't be offended by the name. For Dummies is a publishing company. They contract with top authors who are both experts in their field and have the ability to put concepts in simple English.

Answer 3

I wanted to do the same thing but couldnt find anywhere I could

There are a few options



leave it as it is



open seperate accounts for each savings item (i found that no bank would let me have more than 1 savings account though)



or keep it in one account (youll get better interest this way) and keep a record on paper what you deposit money into the account for



good luck

Answer 4

Pay it off (if you want to leave yourself a few hundred dollars in savings and pay it off next month, then do that). First, your credit score will go WAY up with a paid off auto loan. Second, you'll be able to save quickly if you put your car payment amount into savings each month. Third, your car loan interest is more than what you're making in a savings account, so it makes sense to pay it off. This is a good question!

Answer 5

You either open separate accounts or you just keep a spreadsheet by yourself to break down the funds in one account. You don't need separate accounts for what you can track by yourself.

Answer 6

Capitol one 360 savings allows you to open sub savings accounts that you can name for different goals.