I used to be terrible at saving – I never saved a dime until I got a real job. Even then, I was just doing the 401k match, and I was spending nearly $2k a month on random stuff (lots of traveling). But when I met my wife and we started planning for a baby, I knew I needed to get serious. I’m 37 now, with a $95k job, a stay-at-home wife, and a newborn. Here’s what worked for me.
Forget the apps – they didn’t work for me. They just tracked what I was spending, which didn’t stop me from swiping my card. I needed something more hands-on, so I created my own spreadsheet and started splitting our money across different accounts. Now, I use 4 accounts: 2 savings and 2 checking, and it’s really helped me stay on track.
Here’s how it works:
Ally Checking (Direct Deposit) – This is for all our discretionary spending (like eating out, personal fun money, etc.).
Ally Savings (Direct Deposit) – This account is for bills like utilities, subscriptions, and credit cards. It’s pretty much set-and-forget.
Credit Union Checking (Leftover Direct Deposit) – This is where we keep money for groceries and gas.
Credit Union Savings – I transfer money here for rent and one utility that doesn’t auto-pay. It’s just a placeholder account until those bills are due.
The trick is separating the money, so I don’t overspend. If it’s all in one place, my brain just wants to spend it all. Breaking it up keeps me accountable. Plus, being married and having a baby really helped me cut the unnecessary spending.
I also use a spreadsheet for budgeting! My tip is to include sinking funds for planned expenses like vacations or gifts. That way, you’ve always got money ready when those things come up.
Same here – I didn’t care for the apps either. I use a spreadsheet now, and even though it doesn’t completely stop me from overspending, it’s hands-on enough to make me more aware of my bad spending habits. Seeing how much I spent at McDonald’s over 6 months definitely motivated me to make breakfast at home more often!
Ripley said:
As a terrible saver myself, this no-frills approach is so refreshing. Thanks for sharing!
I totally get it! Separating the money helped me so much because if it’s all in one account, I just want to spend it all. Having a wife and a kid really helps cut down on the BS spending too.
I do something similar, but I use paper. Writing out every purchase helps me keep track. Plus, we use a credit card for everything and I pay it off weekly, so it helps us rack up rewards for travel. Everyone’s system is different, but if it works, it works!
Could you break down how you’re using those accounts? Like, what’s generally kept in each, and how much do you direct deposit into each one? Also, where do you keep your main savings?
Day said:
Could you break down how you’re using those accounts? Like, what’s generally kept in each, and how much do you direct deposit into each one? Also, where do you keep your main savings?
Sure! Here’s a quick breakdown:
Ally Checking: This is for personal spending, road trips, and dining out. We put $100 here per paycheck.
Ally Savings: This covers utilities, subscriptions, and credit card payments. We direct deposit $441 per paycheck.
Credit Union Checking: This is for groceries and gas. We transfer money here as we spend.
Credit Union Savings: This holds money for rent and one utility. We transfer funds to this account until those bills are due.
We budget based on my lowest paycheck to be safe, and anything leftover goes into savings (Fidelity account). We save about 12% of our income, but bigger paychecks mean we can save more. Hope that helps!
@Nevan
This makes total sense now, thanks! I think I might try doing something similar because it sounds like it really helps separate bills from fun money. You’ve totally inspired me to rethink how I manage my accounts.
