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comment by blackbootz

    It's exciting because now i feel like I am actually making dents.

Congratulations. I'm still at the point where I'm waiting for my paychecks to be at all considerable. Not to say that I'm not trying to create good habits because I don't make shit, it's just that creating sub accounts for different emergency funds like car repair, broken lightbulb fund, medical, etc., seems patently goofy right now when I'm funding them with such a small stipend. I'm not complaining though.





_refugee_  ·  3678 days ago  ·  link  ·  

FWIW, I don't get the point of creating multiple sub accounts for that kind of stuff. I have 4 bank accounts. 3 are all linked and really function almost as one account - it's a virtual wallet set-up by PNC (shameless plug) where I have one checking, one sub-checking, and one savings. Every paycheck I put a little money in the savings - that's what ends up getting pulled away for my short term emergencies. Every paycheck I immediately pay all bills due between that date and the next paycheck. If I have something that comes out automatically, like car insurance, I move that money to the sub-checking so that i can't spend it. I move it back the day of or before the automatic pull.

The fourth account is a no-touch savings at a separate bank. It's linked to my other account but any money transfers take 5 days, so it's a good way to make sure I don't spend it. Technically I have a card for that account but I haven't activated it. That's my "no touch/SUPER rainy day/SUPER emergecy/Six month fund/mortgage" money. There is only a pittance in there but it grows every paycheck.

So that's how I budget. I keep an excel spreadsheet and I plot out usually about 3 months in advance so I know I've got all my bills accounted for, I can see when I have extra paychecks and allocate that money, and see how much spending money I'll have. The one account is never touched, otherwise the money fluctuates and moves freely between the 3.

Personally, I think $60 to spend on budgeting software is incredibly ridiculous.

blackbootz  ·  3677 days ago  ·  link  ·  

    Personally, I think $60 to spend on budgeting software is incredibly ridiculous.

I wouldn't disagree. Ironic, too?

And it seems after reading about your personal finance system that you wouldn't need something like YNAB. As for the idea behind subaccounts, the benefit is completely psychological. I like to see my progress within each goal, but I guess you could do the same with an excel spreadsheet, so it's practically the same thing, huh?