Home > August is a Big Spend Month

August is a Big Spend Month

August 20th, 2007 at 02:40 pm

Well, I'm tracking ALL spending this month (I usually have a good idea on the inflow/outflow from the checking account) but am careless about cash (usually only about $150 coming in from coin-operated laundry and odd driving around I do for MIL, etc.

August has been scary:

(1) Had to replace a lawn mower (DH does three lawns - ours, our rental property, an elderly neighbor's) $215 end of season Sear's Craftsman

(2) Had to replace carpet cleaner - Bissell on sale on Kohls $144 (got $30 Kohls dollars back) with 4 kids/2 dogs and beige carpeting - this was a must

(3) $112 to plumber for a clogged bathtub drain at renal property (not bad, could have been worse)

(4) $72 to heating/air conditioning for house call today - only charged the diagnostic fee as the $350 part installed in Jan was faulty

My question is: do these things come from an Emergency Fund? I am assuming that they do and was wondering where do you all keep your EF? As a cushion in the checking account? A savings account? I'm considering where and how to deal with more unexpected things. I paid cash for all of these with the exception of the carpet cleaner,

6 Responses to “August is a Big Spend Month”

  1. Ima saver Says:

    I keep mine in a money market checking paying 5.12%. I can write 3 checks a month.

  2. fern Says:

    I maintain a checking account for day to day bills that usually averages anywheres from $2-4,000. I also have an online money market account with Emigrant that i guess qulaifies as my emergency stash, since i never withdraw unless i really need to.

  3. Aleta Says:

    I don't know where you are in your finances. If you're still in debt, you might not have much in a savings account.

    Normally, for a rental house, you set aside so much in the rental account for maintenance on the house. That shouldn't have to come out of your money. It is an expense against your rental income.

    As for the other items mentioned, the house call for the AC maintenance, I put under house maintenance which is money you allocate per month for maintenance on your house. Has nothing to do with your emergency fund per se. Although, if something does happen like it did to you, you will only have your emergency fund to fall back on.

    When, it comes to lawnmowers, vacuum cleaners and such; it is normally something that I try to forsee in the future that will break down and I save separately for that as one would for tires for a car.

    Don't know if any of this helps, but every little bit of advice helps.

  4. Aleta Says:

    Also, you need to keep your money where it is easily accessible quickly should you need it. A good paying money market as Ima says shoudl handle that for you.

  5. madhaus90 Says:

    Thanks for the advice all I appreciate it and should look ino a money market with check writing privilages -

    I know I need an acount for the rental property, but it has been lived in by my grandparents up until just recently and their "rent" only covered expenses and didn't yield us "income" but we now have real renters who are paying real rent.

    I do have $10K credit card debt at 0% interest in life of loan - I used that to invest and am making 5% on that (It was my first attempt at this and I don't really know the cost benefit of this system yet) I can readily pay it off and don't use it. Other than that we have another $10K (savings and vacation fund)

    still trying to figure out this allocation stuff - i am a newbie ...

  6. Aleta Says:

    Just hang in there. You'll revise your plan many times over. You have to start somewhere which you have done and then you can tweak it as your needs arise. No one has this down pat. Each situation is different in even the way we look at our finances as you'll see as you read the different blogs. There is a lot of information here though. Some people like Dave Ramsey here. I believe he has a breakddown of the different accounts on his website. It would be somewhere to start. Then, there's is ALL YOUR WORTH, by Elizabeth Warren who gives a common sense approach to finances. A lot of these books are in your library. Good luck!

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