Month: September 2016

Personally I do much better when I see cash in an envelope

Some of the sinking funds envelopes we have are for:
Roof–this is actually started WAY in advance of needing one. We put a roof on a year ago and I figured what we’d have to save if the roof lasts 20 years. Divided that by 20 years then by 12. I am saving $50/month. Realistically I believe our roof won’t last 20 years simply due to living in hurricane territory. If it’s ripped by a hurricane, we’ll have a deductible, then the rest covered by insurance. I figure anything we save will go torwards the deductible if it has to be replaced sooner than 20 years.

Car–tags, drivers licenses, maintenance, etc.
Car Insurance–We make a single payment every 6 months and this saves us a $5 monthly fee that is charged when paying monthly. Recently I figured out that our next insurance bill will cost us more and have had to amp up how much I am saving, kinda putting a squeeze on the budget. 🙁
Blow Money–dh and I each get this in cash. He gets less than me because his clothes basically come from our store, which is taken out of end of year profit. It covers clothes, personal entertainment, meals that are taken personally, not part of the family eating out, hobbies, etc.
Hair cuts/color–a haircut for each of us and a color for me. I have been getting mine at the beauty school and it saves a ton of money. All students are supervised by instructors and their work is checked before the client gets up from the chair.
Pedicure–I have issues with my toe nails that would require going to a podiatrist, or getting a professional pedi. I choose not to sit in a doctor’s office. Plus I get my nail painted! 🙂 The nail technician I go to has been doing this about 25 years, by appointment only. Not one of the walk-in places where no one speaks English!
Restaurants–we budget for eating out as a family. It’s not quite a much money as I’d like but close enough.
We have a lot more sinking funds but I think you get the idea. I am very tactile … I love to touch and feel things … it is part of my scrapbooking, coaster business, etc. so it is natural it would carry over to handling money. It makes it much more real to me to see the cash dwindling or growing in any given envelope.
I’ll quit for now but I hope that helps.

Not sure what Martin thinks

But I’ll tell you what my “car guy” husband thinks and it’s probably not necessarily what Martin would say (he sold cars for a number of years, honestly, and now works for a car manufacturer in customer care. He is upfront about what car salesmen and dealers do and do not make money on (ps…yes, there are often “shady” car salesmen, but more often than not, the dealership owner and managers are the ones making the big bucks or pushing anything dishonest…your car salesman is making diddly squat and just trying to squeak by — it’s why my husband left that aspect the business, even though he loves it)
Ok! He says:

I believe in them, so long as the plan purchased is backed by the manufacturer, and that it’s purchased at the time of sale. Otherwise, the price goes up as it’s now a used vehicle. I would especially recommend one on a used car with higher mileage. It will cost some cash, but may be worth it in the long run. Make sure you’re purchasing the level of coverage you want. Not all plans cover the same components, and some have drastic levels of coverage (not much to everything). A customer can shop around for pricing, which can be used to negotiate. Most dealers mark up the plans between 75 and 100-percent from cost + offer payday loans (easy&fast cash). It’s a huge moneymaker for most dealerships.

What I don’t suggest are the following:
-tire & wheel care
-paint and fabric protection
-LoJack (insure your vehicle)
-key care

You can try it that way and it might work for you

For us, esp my non numbers person DH, we have a bunch of small sinking funds. Our bank lets us have as many sub accounts as we want. Right now they are set up as savings accounts then we put the amount we need into our main account when we need to spend it.

We currently have

DH’s allowance (as he jokingly calls it) this is his money for his gas, his haircuts, whatever he needs, he gets 250 a month, and as long as he doesn’t blow it all he can spend the rest however he wants – lunches out, whatever.
Savings – this is used for big ticket items we need or things that pop up we didn’t expect. Like my youngest needed bike repairs recently.
Car fund – this is for any car related expenses, plate/ tab renewals, maintance, whatever
Kids clothing – clothes & shoes
Vacation – this was suppose to be a cruise in 2014 however hubby has decided to retire from the Army & get a new career so it will now be moving expenses.
Scouts – our kids don’t do sports or music so this is our major expense for them, we put aside enough to cover summer camp & monthly expenses including dues, camp outs, day outings, they do fundraising to supplement this as well.

Im sure we have more I just can’t think of them right now.
DH’s allowance is actually a debit account so he can withdrawl with a separate debit card with a credit card logo.
My blow money is taking out monthly and put in my purse as cash. Which works better for me.
My gas is taken out 2 times a month, on payday. One tank will do me each 2 week period. Even with DH sometimes taking my car.

We tried dumping it all into one account and doing a spreadsheet/ check register for tracking the money, but it was just too much extra work for us. This way is so much easier for us, esp DH. And if you borrow money from say savings if there isn’t enough in the car fund, we can track it better that it was moved.