Figuring out Finances

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After the vet visit yesterday, I knew we needed to adjust our finances for future vaccinations, vet visits, and medication.  I have spent some time today working numbers to come up with $85 per month to set aside for the pups.  This $85 will solely cover vaccinations, monthly medication (Heartgard and flea and tick preventative), and Bandit’s new prescription.  If there is an unforeseen emergency involving either dog, the money will come out of our emergency fund.  It was a little tricky to tweak the numbers in order to come up with the $85.

I went through our cash envelope categories to see what I could do.  Here is what I came up with:

The cash category is in bold, the new cash amount is in green, the difference (which will go to the new savings for the dogs) is in red.

Dogs: $60  ($20) (This dog money goes to food, treats, etc.)
Clothing: $0 ($20) (We are doing fine on clothing, and if we NEEDED something, we could start saving for it.)
House: $30 ($10) (This is for projects and supplies, not household goods)
Miscellaneous: $20 ($10) (This is for those small expenses that seem to pop up: stamps, postage, etc.)
Carseat: $50 ($10) (We plan to buy a new car seat in September when Hubs changes schedule and we need another one)

That gets us $70.  The additional $15 will just come out of our budget as a new category.  This means that we will put $15 less into our savings account each month.  This will start with our May budget.  I chose to put it off one month because the cash has already been taken out (and some of it spent) for the April budget.

The problem with starting in May instead of April is that it will put us a little behind when the first refill of everything comes due.  In order to offset that shortfall, I will put any money from photography sessions into this account instead of into our emergency fund savings, as I was planning.  (It will be 1/3 of the income from my photography sessions, as 1/3 goes to photography taxes, and 1/3 goes back into the business).  If we do that for the month of April and May (I currently have 3 sessions booked, and 1 in the process of being booked), then we should be caught up for the meds and should be able to cover the vaccinations that will come due in May.  Once we get to June, our budget will back to normal. (One downside is that our goal of $4,000 in the emergency fund will be a little bit harder to reach, but not impossible.)

There are a lot of different ways to save for unexpected and even expected expenses.  The way we do it is just one way.  I like having the separate savings accounts through CapitalOne360 instead of just lumping it all together into one savings account.  I like knowing where every dollar is going.  Right now we have 6 savings accounts that are saving for future purchases:

Christmas
Photography Taxes
Photography Gear
Dogs
Car Tag Renewal
Car Seat

They are all separate and although they are linked to our checking account, the money is not easily accessible.  It is not accessible at all from our ATM or from the checking account unless we do an online transfer.  It is safe and out of our hands.

I think that is it for our finances now.  I am sure I will have an update again for Friday Financials.

Do you know where every dollar of your paycheck is going?  

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3 thoughts on “Figuring out Finances

  1. I do the same thing with my Cap One acct. I think we have ten; includes camp/Christmas, cats, irregular expenses, cars……I too like seeing it all separated out.

  2. We use Capital One (3 accounts) as well as our regular debit card (3 more accounts). It really does help to see what we spend/save money for.

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