So over the years I’ve realized that making things easier is often results in less frustration and more happiness. The classic: KISS (keep it simple stupid). I used to be a control freak and watch every penny with my money, but over the years I’ve been easing up on my control freak tendencies. For example, I’ve stopped balancing my cheque book weekly, now I just review my monthly statement for obvious errors.
My latest realization is I need to stop tracking so many sub-accounts in my savings. Currently I track several sub-accounts including:
- Christmas savings
- Insurance savings (house, car, life)
- Property Taxes
- Heating fund (I self equalize my payments)
- Emergency fund
Yet over the years I’ve noticed the account never runs out of money as a whole. Everything is spaced out during the year that the account always has a healthy balance into it. So I’ve decided to give up some more control over things that don’t matter that much and create the super saving fund. It will have one balance and replace all of the above sub accounts into one. I will also then put in an automatic savings transfer to avoid having to rebalance the sub funds monthly.
I will still track the invoive amounts of what I spend for each old sub account so I can review if the monthly contributions are enough annually, but otherwise I won’t be looking at it on a monthly basis. In addition, this means if I’m over saving I just end up with a larger emergency fund which I can remove any excess from on an annual basis.
Overall this should makes things simpler and reduce my time looking at numbers. How about you? Do you keep any sub-accounts in savings or just mash it all together? Why?