Save For Future Expenses

My wife and I went to our bank the other day to open another savings account.  While we were working through the paper work, the representative noticed that we had several accounts.  I pointed to one account and said that is where we hold our money to pay our auto insurance.  She said, "I never thought of that."  She said, "That would probably save extra insurance fees included in monthly payments."  I agreed and said that each of our accounts has a purpose for payment of a future non-regular bill.  We transfer amounts each week to various accounts to save for a future expense.

One account I have transfers one dollar for each swipe of my debit card to a savings account.  We use that to pay for Christmas each year.  It is interesting that one dollar for each swipe of the debit card is enough to buy our Christmas presents and other costs related to Christmas.

I have another account that we use to save for the winter propane heat bills and the January property taxes.  Each week an amount is transferred to that account to be available to make those payments.  We pay recurring bills out of our main checking account. 

There is no limit to how one can use this plan.  Any lump-sum bill, or special purpose expense, can be met in the same way.  Modern banking accounts are so neat to set up the automatic transfers and just monitor them from time to time to see that everything is going according to plan.  A person does need to watch for bank fees with various accounts.  Only set up accounts that have no monthly fees.

Many years ago Larry Burkett taught an envelope system.  He encouraged people to put cash in various envelopes to meet goals, manage costs, and help isolate funds to pay future bills.  It helped me, but I think the opportunity now with computerized banking is better.  Also, not having a dresser-drawer with a lot of cash in it is less worrisome.

I wish computer banking could have been available to me several years ago.  It would have really helped.  But, I am glad it is available now to help with whatever expense or special item in which someone might need help to make future monies available.