Five years ago, when we moved to Maryland, we had many future expenses that we needed to save monthly for. Some of these were:
- Furnace Oil - two or three fill ups per year, depending on how cold it was, approximately $500 each
- Dental Insurance - quarterly
- Water/Sewer - quarterly
- Summer Vacation
- Used vehicle repair - $200 per month based on a history of what we'd spent in prior years
- Pet Vet care - $100 per month - two elderly pets required more care
- Annual memberships - Prime/Costco
- House Taxes - that's a big one
We would save this money each month in a separate bank account called "Reserve" and pull the money out as it was needed.
After five years of discipline, it finally dawned on me that we were living so close to our budget, that we no longer needed to separate out this money in its own separate account. I've decided to lump it in with our three-month emergency fund where as one bigger sum, it can earn more interest in a money market account.
I read recently from another blogger who had 17 different savings accounts to save for different things. The time it would take to maintain that many accounts is daunting to me. I fully believe we are finally disciplined enough to stick with our budget and not mistakenly use up these reserve funds and I feel better about putting it in one location where it's available but can earn more interest.