Comments on: Really Pay Yourself First: Doing a 180 on Savings

By: Wojciech Kulicki

Wojciech Kulicki — Thu, 04 Mar 2010 23:35:27 +0000

Absolutely–I think a checking buffer is one of the first things you should establish before you even start saving. $1-$2K is usually pretty good, depending on how much you spend during any given month. Like you point out, it also allows you to over-spend within reason in a short-term kind of scenario.

By: cg

cg — Thu, 04 Mar 2010 00:26:03 +0000

Part of the key for me is having a buffer in my checking account. I keep enough that I could go through most of another month if I needed to. Mostly I do that just in case my bank’s website is down at exactly the wrong time and I need to cover rent (This has never been an issue, and I give plenty of time for the transfer, but still, things go wrong at banks occasionally and rent must be paid). However, having the buffer means that if I overspend slightly in a month, it’s no big deal. I can replenish with the next month’s transfer.

It takes some awareness of what you’ll probably spend next month (mine really only changes when car insurance is due), but it works great for me! Keep us updated, MyFinancialObjectives and Wojo!

By: MyFinancialObjectives

MyFinancialObjectives — Wed, 03 Mar 2010 14:19:12 +0000

Very interesting Idea, I’m looking forward to see how it works out! My only fear is that if you continually start to get so low on your checking account each month, you may have the temptation to just regularly transfer more money out of your savings-essentially treating you savings like your checking, but with more hassle. However, CG has had success, and I wish you success too! If this works, I too may give it a try, it really does sound like an excellent way to save!

By: Wojciech Kulicki

Wojciech Kulicki — Sun, 21 Feb 2010 21:54:03 +0000

That’s awesome–I’m glad it’s working so well for you. I hope to have similar success.

By: Wojciech Kulicki

Wojciech Kulicki — Sun, 21 Feb 2010 21:44:26 +0000

That’s what I like most about this! It’s not the typical approach to savings, but it’s something that I feel will work very well for us!

By: Wojciech Kulicki

Wojciech Kulicki — Sun, 21 Feb 2010 21:42:27 +0000

I have a feeling it will! Even if it’s a wash, it’s already changed out mindset when it comes to spending.

By: Wojciech Kulicki

Wojciech Kulicki — Sun, 21 Feb 2010 21:40:17 +0000

Awesome, thanks! Expect an update in about 6 months. I’ll try to get an idea of the difference between our old savings rate and our new one!

By: LeanLifeCoach

LeanLifeCoach — Sun, 21 Feb 2010 13:25:10 +0000

This is lifehacking at its best. You are taking advantage of your own traits to leverage your ability to save… More power to you!
LeanLifeCoach´s last post: America Saves Week

By: Len Penzo

Len Penzo — Sat, 20 Feb 2010 18:38:25 +0000

I’m always a sucker for a good experiment!

I like the idea, Wojo! Very interested in seeing if this actually results in you saving MORE money than you did previously.

Looking forward to a complete analysis this summer!

Best,

Len
Len Penzo dot Com
Len Penzo´s last post: Why the Self-Employed Are Smarter Than You

By: cg

cg — Sat, 20 Feb 2010 17:01:47 +0000

This is exactly what I’ve been doing for the past 2 1/2 years. I pretty much know what my monthly expenses are going to be, so at the end of the month I transfer from savings to checking what I’ll need for the next month (I also keep a $1000 buffer in checking just in case). Pay check gets direct deposited to savings monthly and FSA reimbursements get direct deposited as they occur. I thought it was so cool when I first set it up, and its been working great for me. Hope it also works for you!