Yippee! For the third month straight, we’ve come in under budget! What the WHAT?! Hard work and diligence, people. The tax refunds are the bulk of the extra monies, but we are really doing well with staying within our set limits.
The March excess was earmarked for starting a new emergency fund, which we opened last week. Why? Our other emergency fund is funded by automatic withdrawal, in a money market mutual fund out of state, with no local branches. Very Ramsey-esque. But making extra deposits is a real hassle. Recently, it took more than 10 days to get money transferred so I could pay the siding contractor. Our other EF is not FDIC insured. True. Our other EF has a lower APY than our current local checking account. Now, I know our EF is supposed to be market-proof, and not an investment account, but a holding place for, well, emergencies. But really, these things are adding up.
So, I looked around and found a local institution, with real branches where I can sit down with someone, that offers a basic savings account that earns five times what our current EF earns. FIVE times! It’s FDIC insured. And it’s market-proof. Even if for some odd reason the APY fell, I am extremely confident it would not fall below the APY of our current EF (which is fully invested in the money market). It’s at the same institution as our checking account, so depositing/transferring our funds will be a breeze, and that will be a non-negotiable monthly minimum, with additional deposits based on our monthly excess. I can set up automatic monthly transfers, but we don’t want to do that just yet.
With this new account, we will be better managing what we have. And that’s all we need to be doing right now: managing the monies better.
The new insurance deductions kicked in, and that affects taxes on the pay. Those numbers were duly crunched and entered. While I was at it, I adjusted our April budget to reflect more giving, to finally reach 10%. This has been a goal for many years, and we finally just did it. I made some minor changes to balance, and it’s not going to hurt! How does that happen? I don’t know, but it does! The principle works.
(Sorry this posted late. I wrote this a couple weeks ago and just realized it wasn’t posted. I edited tense for accuracy.)