Just hit my first $500 saved in my emergency fund!

For years, I kept any extra cash in my regular checking account where I'd just spend it. This January, I opened a separate high-yield savings account at Ally Bank. I set up an auto-transfer of $25 from each paycheck. Watching that separate account grow to $500 this week feels totally different. Has anyone else found that keeping the money physically separate makes you less likely to touch it?

3 comments

3 Comments

clairen851d ago

Ally's buckets feature is what finally made it click for me. I have one labeled "roof fund" that I can't pretend is for anything else. Seeing it broken down like that stops me from moving money back to checking for random stuff.

wesley1811d ago

Roof fund" sounds way too honest, @clairen85. Mine is just labeled "no.

kaih361d ago

How much did your friend save before they had to use it? My buddy had a "car tires" bucket and hit his goal right before his blew out, it was perfect timing. That visual split like @clairen85 mentioned really locks it in, you can't trick yourself.