Saving to Spend

Greetings and Salutations-
  So now we enter the world of pre-planned spending. I call this my Category Spending/Savings Account. I would recommend no more than 10 categories to plan for at a time. Should you be able to handle more please do--but 10 is about all my head and wallet can handle! Your situation will be different and what you plan to save/spend for will be different. Maybe you should start with one category or two. Makes no difference as you need to start from somewhere-- so close your eyes and pick something!!
   Theses are my categories: (1) Home repair (2) Car Fund (I'm saving ahead of time for a down payment on a car) (3) Deductibles (home owners and my car deductible) (4) Christmas Fund (5) Unexpected Expenses (6) quarterly and yearly bills (ie my car taxes, terminix, costco membership etc) (7) Murphy's Slice (my dog--vet, food etc) (8) Personal Acct (make-up, hair cuts, etc (9) Clothes (10) Car Repair.
  I can tell you the item I see missing off the list immediately--Vacation Fund! This is a very important fund, but for now- I can't justify saving any real money for that until I get some of these accounts fully funded and then can start that kitty. Make these categories your own and change out what you need for you. Maybe you will have categories in waiting like I do. First things first. There are some things I need to get a cushion for that when I have met my goals (even if that is just a really good start in savings) I can "spread the love" so to say.
  For instance-(category 3) once my deductibles account is fully funded with the amounts of (my deductibles) for both my home owners and car I will stop putting money back in this account and move onto the next. My home owners is high so this will take me years to have this goal come to fruition but it will happen. Maybe you rent so all you need to fund is for your car. Cool--save and move on! (category 4) I will have $350 to do my Christmas shopping without sweating where it comes from because I set aside $30 a month through out the year. When I get ready to go shopping for the first time in a LONG time I will not even get my heart rate up about it!! How much will I spend for my gifts? $350 because that is what works for me. What is your number? Don't worry about this year- but pay attention. How much do you want to earmark for next year and start this Jan!!
  Lets talk about one more category in detail this time and save the rest for next time.I don't want you to be overwhelmed by this process. This is one of the most important processes to this entire thing in my humble opinion. With minimal planning and due diligence on your part- you can plan for the future of spending tomorrow today and keep your bee-hind out of trouble. Even if the burden is lifted in only one area of your life. Pick one subject and I don't care if all you save is $5 a month.
  Quarterly bills- add up and pay attention to the bills that you pay irregularly--I keep a running tab and add to it when someone comes up due I forgot about. Like your car taxes. Like pest control. Like professional licenses. Add them all up and divide by 12. This is the amount you need to save for that category so when the bill comes due you will be ready. In some instances this is $2 a month for me. But it all adds up in the end.
  Use any method you choose to keep up with these categories. As by now you can imagine I use a 2 column book with pens in 2 contrasting colors-Blue for the regular stuff and red for when I exceed my goal. You are doing great I am certain of it!! Remember that the small successes lead to big ones and it all counts. Any change in the right direction is something that can snowball into something terrific!! keep at it and don't give up!

Tootles :)
Heather