Unexpected Expenses January 11, 2012
Posted by Tracey in Spending.Tags: Spending
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I’ve had two last minute social event come up this week for work collegues – a baby shower and a farewell lunch (at a reported expensive restuarant I’ve just found out). Both before payday. It means I’m going to have to dip into savings. They’re both rather important so I can’t skip out on them, which is what I usually do. I’m just going to have to plan my purchases wisely and make it up on payday.
Before these came up, I was thinking about using an easily-accessible savings account as a sort of credit-card-stand-in. So I’d put a designated amount in there (say $100-$200 or so) which would be my “credit limit” and would need to be kept at that level every month – treated like an actually credit card, with myself acting as the “bank”. However, I’m not sure about my willpower. I think if I knew the money was there, I would give in to temptation too often. Does anyone else do this or something similar? It would be handy to have money I could call on at the last minute – like if my car broke down and I needed to call AA or a locksmith or something who you have to pay on the spot. My Emergency Fund is in a savings account at an online bank, so it takes one working day to access the money.
What do you think?
I think it’s a great idea! Worth a trial, anyway – maybe start with a lower amount and see if you can resist the temptation to dip into it unnecessarily. Kind of like your very own overdraft, minus the fees.
I don’t know you might have more will power then me! I know I couldn’t really do it. If its not labelled for something I spend it. But see how you do and if it doesn’t you know you at least tried.
[...] I’m also going to put $50 aside into my “credit card” account and see how my idea works. At least it should stop me dipping into my savings proper and stop those guilty feelings [...]