She Strengthens

Savings Strategies for a Secure Future

From One Account to Seven: My Savings Evolution

I used to think one savings account was enough. But as life’s expenses and goals changed, I realized I needed a more tailored approach. What started as a single emergency fund evolved into seven distinct accounts, each serving a specific purpose.

Identifying My Savings Needs

I began by recognizing the irregular expenses that would often catch me off guard. Car insurance payments, taxes, and furniture replacements were just a few examples. These expenses prompted me to create separate accounts to set aside money specifically for these needs.

My Seven Savings Accounts

1. Emergency Fund
Priority: Highest
Strategy: Maintain at all costs
This account serves as my safety net, holding four months’ worth of expenses. It’s strictly for true emergencies, and I’m fortunate to have gone over a year without needing to tap into it.

2. Adventure Savings
Priority: Low
Strategy: Drain and refill
I’m saving for international travel with my best friend. We’re planning a trip to Japan this fall, and I’ve set aside 10% of my yearly salary for the adventure.

3. Car-Related Expenses
Priority: Medium
Strategy: Build and regularly tap
This account covers car insurance, registration, oil changes, and maintenance. I contribute $277 monthly and aim to accumulate a surplus to eventually buy my next car in cash.

4. House Down Payment Goal
Priority: High
Strategy: Build and build
I’m saving for a potential house purchase, even though I’m unsure if I’ll stay in the area. I contribute $300 monthly, aiming to reach $3,600 by year-end.

5. Luxury Spending
Priority: Low
Strategy: Toss in extra and wipe it out
This account is for big-ticket items I want to upgrade, like computers and furniture. I add money whenever I have extra and use it to cover these expenses when the time comes.

6. Christmas Savings
Priority: Medium
Strategy: Drain and refill
I set aside $80 monthly for holiday gifts, charity events, and travel to visit family. This account ensures I can enjoy the season without financial stress.

7. Saving for Taxes
Priority: Low
Strategy: Drain and refill
I opened this account to cover taxes owed, which I previously had to take from my emergency fund or reduce other savings goals. I now earmark a higher percentage of my freelance pay for this purpose.

The Power of Multiple Savings Accounts

By recognizing my unique needs and goals, I’ve created a savings strategy that works for me. Seven accounts may seem like a lot, but each one serves a specific purpose, helping me stay on top of expenses and achieve my long-term goals. As my priorities change, I may need to adjust my approach, but for now, seven feels just right.