As a side note to nothing that will follow in this post...G-man just left for work. Thank goodness, as he was a crabby patty this morning and he needed to GO.
So I am going to revisit a topic that I haven't talked about in awhile: Savings accounts.
We have 3 categories of savings accounts:
1) EF fund. This is at the credit union. We have our car loan there as well, and we have money direct deposited from G-man's main paycheck. The amount covers the car loan, and an EF contribution. We rarely withdraw money from this account, as I am not really sure WHAT an emergency would constitute. Yes, the washing machine last year was an emergency, but in the ideal world I would have a separate account to cover those types of things.
2) CapitalOne360. Formerly ING Direct. We have about 10 accounts there that are "sinking funds" accounts. We have money for car repairs, the cats, Christmas, camp. I know some people will say we could have just 1 account, but in my world, I need to see the visual breakout. Hey, it works for us.
3) The savings account linked to our checking account. When we opened our checking account 13 years ago, we opened a savings account. We do add a little to it each payday, but mostly it is used for "overage" or float money. In years past, I would pull money from there, and maybe it made it back...maybe not. In the past 2 years, I can honestly say that 90% of the money we have pulled from there was put back in less than a week (usually it was a float just until payday).
I keep thinking about savings account #3. It has about $1,300 in there. And most of the time, if I do pull money, it is $200-ish, and then transfer it back on payday. So on any given day, there is typically at least $1,000 in there. Remember, this is in ADDITION to the EF fund.
I keep wanting to take it down to $500, and put that extra money elsewhere. Probably part of it would plump up the car account, as it seems that is the one area of our lives that seems to cause the biggest problem. Maybe I would put $250 in there. If I didn't plump up the car account, that would leave $800...
That would be 3.5 extra car or student loan payments. It would be about 70% of either the dentist bill or Bossy's supplies. It would be about 1 month extra payment back to the retirement loan.
Even if we put the $250 in the car account, that would still be $550, which still would bring things down, although the WOW factor isn't as high.
So what is holding me back? The security of knowing it is THERE.
Even though logically I know we still have money we can pull from other places, knowing it is in that account just makes me feel better, even though it could actively be doing more. I know I would still have $500 in the account to "float" and we have NEVER needed to float that much.
I used to say when the account hit $1,000, I would take out money. Then I said when it hits $1200.....and now we are at $1,300. I have no idea why I need this money sitting there....other than security, but security for what? I have an EF. If we absolutely needed to, we could drain money from the CapOne accounts. So what am I doing here?? Maybe I should just pull $100....and ease my way into it.
What would you all do???? Leave it? Use it for other purposes? Take a vacation (trust me...this thought has crossed my mind.....but I couldn't do it)?