There are so many options out there for where to build your savings. It’s actually totally overwhelming when I think about it. Does one have a single saving account, multiple accounts, different type for different savings? How and where one puts their savings is a personal choice. I would like to have an accessible account for our emergency fund as well as an account for short-term savings such as gifts, one-off expenses etc but need to decide how to organize it all.
In a Jar? Under Your Mattress? Between the Pages of a Cookbook?
Growing up, my mom would stash 20’s around the house in the most unusual spots (in the container that held her tea bags…?). She was worried that some catastrophe would happen and she wouldn’t have access to the money in her bank that you could usually find a few hundred bucks in our home if you looked hard enough. Seriously, our house was a home robber’s dream, no wonder it never happened. While I do think it’s a good idea to have immediate access to some money in the event of a disaster, at least put it in a locked, fire-proof box!
I feel like a traditional savings account is somewhat old school. Am I wrong? For our recent vacation savings, we slowly stashed it away in a traditional savings account but when we get home we will be looking at different options since we’d like to get a better interest rate.
Here in Canada we have a tax-sheltered savings account called a TFSA. With interest rates much better than traditional savings and no penalties for moving your monies around, this is a great option for us to use initially to hold our emergency fund and then use long-term for retirement savings.
Where to save our money is one of those overwhelming things on my to-do list. It will require effort on our behalf to shop around and figure out what works for our needs. In terms of individual short-term goals, I’m thinking about staying with our traditional savings account and managing the funds within a spreadsheet or something alike. I used to have three or four accounts which all saved towards a different goal but it became slightly overwhelming to manage all my accounts. As long as I’m diligent about updating the spreadsheet, one account should suffice.
How do you manage your short-term savings?
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