Savings Breakdowns

desertdreamer

Hi all!


I am a former spendthrift who has started on the road to budgeting and am really excited about having a far more financially sound future.


Part of this is tackling debt, having a budget in place to own and control every single dollar I earn and SAVE!


In my research and on another forum, I've seen it suggested that having separate savings account for different things can help (and as such, you have a budget within a budget) and I'm trying not to overcomplicate myself, but also wondering if anyone here chooses to do this; allocate your money to different savings accounts and if you find this works?


As it is, when I get paid, I take out a set amount which I put into various envelopes, and the rest stays in my main account for my direct debits including debt.


The rest I then attribute to my physical envelopes and have one set aside for emergencies which also functions as my only savings account - to this, I have seen recommendations to split these too.. so that there's a very clear delineation between emergencies (any repairs, new white goods if I ever needed them, medical, dental) and one for savings which would be for vacation, retirement etc.


I'm in my early 30s and just starting out on this properly, so I realise this message is quite particular and a little awkward, but I'm really trying to make an effort to organise this part of my life and lift some anxiety, knowing I am paying my debt and have savings most important of all.


I do like the idea of separating up savings into brackets... perhaps another savings account which will be anything left over from my pay or even $20 per pay as a fund for gifts, fun purchases, etc that is just for me to enjoy for whatever and isn't attributed to emergency or general savings


Mostly I am asking whether having too many accounts/envelopes/systems has been helpful or problematic in the long run? Savings has become something I am really enthusiastic about and so am keen to approach this in the best way possible.


Thanks a lot!

Zanderman

I think a lot of people divide up savings in this way - either in reality in different accounts or in virtual reality with a spreadsheet system that allocates money to differing budget headings even though it's mostly kept in one place (more self-discipline need for the latter!).

Your post, with references to dollars, vacation, medical etc, suggests you're in the USA? You might get better answers if you post on a US forum rather than here, a UK forum, but the generalities will be the same.