Our savings is growing! In less than a month, we have saved up half the value of our other emergency fund! And the interest rate is higher, so that will compound. I’m giddy!
With the opening of our new savings account (which we are using as another emergency fund), we have the ease of transferring funds immediately from our checking account. This is important because the thought of pulling out papers, writing a check, mailing it, etc. turns me off. This is why I rarely added extra money to our other emergency fund. But since now I can transfer so easily, so quickly, and with so much gratification, our situation has already changed dramatically.
This week, we received a nice-sized additional income deposit. It’s already been transferred to our savings, and our financial situation is looking so promising.
We’re keeping much closer tabs on our spending and sticking to our budget, and the extra is going right over to that other account. Out of sight (the checking account balance), out of mind (compounding unencumbered). And I must say that having a local account just somehow makes me feel more secure. And I can go in and sit down with a real person if there is any question or issue.
That other EF just sits there. We really don’t want to shut the account down. The minimum I can have auto-withdrawn each month is $50, so that’s happening, and it will be a “forget it” kind of thing. The balance is okay, but not enough to pay our property taxes, or anything substantial, just a basic minimum emergency fund.
Now, with the better-managed money, we aren’t making extra payments on our auto loans just yet. The reason is that there is automatic withdrawal for the payments (the loans are at the same institution as our other EF). Doing anything out of the “norm” is a real chore: there is no way to make extra principle payments, one-time or otherwise, on the loans. So, as soon as we have enough saved to cover the payoff balance on one, we’ll be doing that. I can see the payoff balance daily, so I know the goal. Each month the balance goes down, and our savings goes up, and as soon as we can cover it….bam! My goal is to knock that out within a year. Totally doable. But that will come after a few more big expenses later this year.
Right now I’m just focusing on that growing balance! Every penny counts, and I’m counting every penny. Soon they’ll add up to dollars. With interest. Upon interest. Giddy again!