Lately I have been reflecting my own financial habits, some good and some bad. Looking back at my past and the current, I wanted to make improvements for the future. I noticed that I never seemed to be able to budget for certain items or categories too well; items like emergencies, entertainment, or a new home.
It seemed to be difficult because all of my expenses were intermingled into one account and I found myself always coming up with some reason or another, to dip into the money set aside for other things. And so I never have been too successful saving for those things.
I noticed that my adult account (the average bank account) was very much like my childhood account – the “Piggy Bank”. Everything was put into one account and not really kept organized or separated.
I am sure most of us had a piggy bank of some kind when you were a kid and can remember this was the start of our first savings account. Every week we would get our weekly allowance and then we would stuff our savings into the piggy bank, shake it vigorously, and listen to the coins rattle around inside. And then at some point in time we would empty it all out and spend the whole thing on the latest toy or craving that we desired. Sound familiar?
Well now as adults it seems we sort of end up doing the same thing, only in an adult version – we put all of our money into the one bank account (our adult piggy bank). The problem I had been having was saving up for items like emergencies, entertainment, business expenses, a new home, new car, etc. With these items being mixed in the same account along with my bills, I never seem to be able to separate the other stuff and so I don’t seem to be saving like I should be… or at least… like I want to be doing.
And so this brought me to my solution (at least for me – maybe you have another way that works best for you). I opened up 3 additional checking accounts and each with its own savings account.
The first account was for emergencies and auto related. You know…when the car breaks down or you need to spend a $100.00 on each tire or the mechanic says that will cost you a billion dollars and you almost die of a heart attack. Or when it comes time to replace the entire car? Fun stuff like that.
The second account was what I have nick-named the “Family Fun” account. This is for entertainment. I got tired of not having any cash to take my wife out or if she wants to see her family… and telling her “sorry… we don’t have the cash right now.” The reason why I never have the cash is I simply had not been budgeting for it. And now that was going to change! And I am not using credit cards! I want to save up for fun not to go into debt as the result.
The third account I created was for business, charity and fund raising. This might seem like a strange mix at first but for me…it seems many business people like to network via charity events or at some kind of fund raising social gathering. But if you never have the cash to participate…then…you never participate. And so I have decided to budget for it and make this a part of my marketing strategy, plus it is for charity right? A win, win. Now…I am starting to save and as a result the next time in the future I will be able to participate.
Do you have other hopes and dreams like a new home like I do? Then perhaps add another savings account for that dream so it will happen. Then dreams can come true… if we budget for them and systematically put money into these funds.
And this brings me back to the lonely Piggy Bank… all by itself. Maybe we should give our kids a few piggy banks and designate each one for its own purpose. So for example, one piggy bank for fun, one for education (college), and one for our future dreams. And that way our kids can still have fun with the one piggy bank but learn how to save for the future with the other banks… so they can have a future and live their dreams.
This is just a thought…. an idea… so if you have a better idea…that is awesome! And I would love to hear it! I think when we can share new ideas or new ways of creating a better future, then we all can benefit by sharing those ideas, even if we don’t agree with them. I find that when I hear about a new idea it makes me start thinking about more ways for that solution.
I am always trying to find a better way to fund my family’s future…but not go into financial debt, or credit card debt, and not to have my general credit ruined.
It is my wish that we all have a chance and opportunity to live the lives we imagine.
So Keep Proactive and Keep Moving Forward!
Do you have a suggestion or a story to share? I would love to hear it!
Article Source: http://www.articlesbase.com/personal-finance-articles/the-piggy-bank-is-it-time-to-add-some-brothers-and-sisters-4670822.html
About the Author
I love to network in person and online. I believe being proactive is the key to overcoming these slow economic times. Being positive is great but without taking action, than there will be little results. I try to challenge myself by increasing my work load in increments of 10%. Each month I want to add another 10% to my plate. I refuse to let this slow economy define my life. I encourage everyone to keep getting up to the batters box and take another swing. Eventually we have to hit that darn ball right.