I mentioned in my recent Budget post about having a savings plan. While I do include these in my monthly “where are you spending your money” posts, I thought seeing a plan for the next 8 months in one place might help assuage some of the BAD commenters fear that I am no saving or prepared to be a home owner or…
But before I post my plan, let me caveat by saying that my ROTH IRA and 401K contributions are NOT LISTED here. They come out of my twice monthly paycheck before I even see my income so I do not account for them here. And this works best for me, I am not ever tempted to spend the money elsewhere.
Without further ado, here is my savings plan from now until May, 2022 (which is as far as my budget goes right now.)
They are all marked as negative numbers, as they are getting transferred out of my personal/bill paying checking account and into the appropriate savings or checking accounts.
My 5 savings categories
You will note that beginning in 2022, I have 5 designated categories. For the remainder of 2021, there are only two. The reason for this is that I now know what Princess’ spring semester will cost me. I have divided that up and am focused on having that amount ready by January, 2022. For this fall semester, I dipped into my Christmas account to pay for college so I’m paying that account back.
For 2022, things will be a bit different:
The bulk, if not all of our travel over the last few years has been to Texas. And I foresee that being the case for the next several years with an increasing number of trips. My parents have been coming here twice a year for the last several years and then we go there a couple of times a year. However, my mom is no longer able to travel.
With my mom’s health on the decline, I anticipate Gymnast and I will be going there more frequently. (The other kids will most likely make the trip at least once a year.) I am preparing for this reality. My dad has been amazing at helping me with travel expenses. He is flying Gymnast out next month for a week. (Gymnast and my mom have a very special relationship, so as often as he can go, we facilitate that.)
I recently sold Princess’ car for $2,000. (I mentioned this as a side note in a previous post.) That money went into a savings account for another kids’ car down the road. Gymnast and I are sharing a car which works out great since I rarely go anywhere. Knowing that another car is going to become a NEED versus a want sometime in the year or so, I am going to amp up the savings so I am not caught off guard and should have a healthy amount when the time comes.
I realize the BAD community is split on whether parents should help or buy kid’s cars. I come from a family who always have purchased the kid’s cars while they were in school. That is something I plan to continue as much as I can.
I think this is self-explanatory. If not, our goal is for all 5 of my kids to get through college or technical training or whatever they choose after high school with no debt. The twins and Beauty, due to their circumstances, get a plethora of funding from the government. So much so that they all get refunds every semester. As long as they make wise decisions, they do not need any financial support from me on that front.
Princess and Gymnast do not get that type of funding. So this savings is to help them out. They both work and save toward college. And their dad has committed to pitching in where he can. This savings account will help cover semesters’ tuition and housing costs along with books, etc. It certainly won’t cover all of the expense but it will be available to help.
In 2022, I will return to my monthly Christmas savings. Yes, I tend to go big at Christmas, maybe bigger than I should as I working to get out of debt. And I may rethink this in regards to my goal of being debt free come May, 2023. But for now, I will continue setting money aside each month.
We always finish our Texas family Christmas shopping by November so we can take it with us at Thanksgiving versus having to pay for shipping. We are ramping up to do that now. I’ve been buying and wrapping Christmas presents for the last couple of months.
*Note: the kids’ birthdays are all included in my monthly budget. I don’t save specifically for them, but do have a dollar amount set aside to cover gifts and a nice family meal for each child’s birthday.
I own a house now. I get chills every time I say that. It’s just so unreal to me still after dreaming about it for so long!
While there’s been a lot of work done to it, I realize that anything could happen. As of 2022, I am setting up a new savings account to save for “house emergencies”. My previous plan had $1,000 per month, but with my debt payoff goal and knowing all the work that has been done, I felt like $500 per month should be sufficient. I am very open to suggestions here as I am new to this one.
I carry the suggested home owner’s insurance through a reputable company, have a brand new roof, new electric, new A/C, new bathrooms/kitchens (including new plumbing and electric)…so I feel like I’m covered barring something catastrophic. But am certainly open to real world experience and guidance here.
Each of my 5 savings categories and budgeted amounts are wholly automated and have their own bank accounts. This was new for me last year and really helped. Kind of the whole “out of sight, out of mind” thing. The college savings is a checking account as there are expenditures from there more regularly then the others.
The others are just basic savings account. I would love some guidance especially on the housing account on if I should set it up differently as I anticipate it sitting a lot longer than the others. At least I hope so.