In 2009, I started a couple new sub-accounts over at ING. I already had my emergency fund and my fun money there (fun money is all my extra income beyond my regular paychecks – basically any money I didn’t budget to earn). I added sub-accounts for travel and auto expenses.
The auto fund receives $100 from each of my paychecks. I also transfer all my mileage reimbursements from work there. The auto fund pays for insurance (I pay every 6 months rather than monthly to get a discount), maintenance, registration, and eventually a new car (or at least a down payment for one). It will also be available if I need to use my insurance deductible (which I keep at $1000 – and have so far not had to ever use – for a lower premium). It doesn’t pay for more frequent expenses like gas and parking.
The travel fund receives $75 from each of my paychecks. Travel is something that is very important to me to be doing and this sub-account is a way for me to save up for it in advance of the trips and not feel guilty about plunking down large chunks of money at once when I do have enough saved to go on those trips.
Sub-accounts are very easy to set up at ING and are a great way to budget for expenses that occur less often than monthly.
Related posts:
- September Budget Wrap Up
- Generating Passive Income During Time Off Work
- Emergency Fund
- A Budget That Works
- August Budget Wrap Up
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A great tip. Thanks for the article and the link! ~ Solid Planning