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Posts tagged with: respite care
Mar 10, 2025    |      0 comments

What Does “Fully Funded” Look Like?

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In accordance with one of my New Years Goals, I’ve been meeting with and interviewing financial advisors. And it’s made me stop and take stock of some of my money habits and think more broadly about our financial goals. 

Since the early days of the blog, I’ve been a saver. And there are two types of savers: 

  1. Those who put all funds in a single lump sum savings account.
  2. Those who have several savings accounts for several distinct purposes.

For years and years, I’ve fallen into Category 2, above. I have talked many times about my love of Capital One. I have a travel credit card through them (and love using the travel lounge for free as a perk!) In addition, I also have several savings accounts through Capital One 360. Each has a separate name, as an easy way to help me keep my money organized. For example, I have savings labeled: Home repairs, annual fees, travel, car repairs, and emergency fund. I’ve even opened two separate CDs: one for travel, and one for my EF. I have a smaller amount of money in the savings accounts, but more in the CDs for these two categories.

All of this may seem very complicated, but I had it very organized and I liked having these separate pots of money. Remember when I recently had to pay for some very costly car repairs? I really appreciated having a pot of money sitting there specifically earmarked for car repairs! It was so much LESS stressful than in years past where I had to take out a BrakeMax credit card to save some money since I couldn’t afford to pay for the full repair at once.

Recently, though, my perspective has been shifting. Now I’m leaning toward opening a single savings account and closing several of my Capital One accounts. Here me out…

 

Factors Influencing My Thought Process

  1. Interest Rates – When I first opened my Capital One 360 savings accounts, they were considered “high yield” accounts. My personal rate is 2.7%. The rate for my CDs is 4.5% and 5.0% respectively (I opened my CDs at different times, and the rates had changed from opening one to the second). This is no longer a very competitive rate. For instance, I found I can open up an e-trade savings account for 4% right now. 
  2. Windfall – I mentioned a few months back about an inheritance we were set to receive. Since then, my father passed away, and another inheritance is coming. Given the influx in funds we are set to receive, it made me start to realize how unnecessarily complicated it is to have money stashed in so many different places. One place would be easier.

 

This then leads me to the question: What does “fully funded” look like?

I have all these savings accounts for all these purposes and it worked because I had a separate budget line in my category for each of these things. But what if each of these accounts was fully funded? What would that look like? What would I consider fully funded to be?

 

My Savings Accounts

  • Semi-Annual Fees – Historically, I’ve had this be a $1,000 revolving account. I use it for my annual or biannual payments for things like car insurance, life insurance, HOA, car registration, and Costco membership. This has been working well for us and I plan to keep this as a CapitalOne 360 account.

 

  • Car Repair/New Car Fund – In the past my car repair account was a $1,500 revolving account. But recently I started stocking money over and above that amount, thinking I’d like to save up to purchase a new-to-me car in a few years. My goal was to have about $16,000 saved up. I know that doesn’t go far these days, but it felt like a good amount to have as a down payment. Thoughts? I’m thinking I’ll keep a smaller Capital One 360 car repair fund of $1,500. But a new car fund would be better served sitting elsewhere. And “fully funded” at $16,000???

 

  • Home Repairs – Historically, I’ve been depositing $150-$200/month to this account. We have used it for the odd repair that’s been needed, but mostly it’s purpose is to save up for larger home repairs like a new HVAC unit or roof. Given the high cost of those types of repairs, I’m thinking $20,000 would be a reasonable amount to consider “fully funded.”

 

  • Emergency Fund – Historically I’ve had $5,000 in my dedicated Emergency Fund. I know Dave Ramsey says to have 3-6 months in an account and $5k certainly is not that. But if I also have a fully funded home repair fund and a car replacement fund….do I really need any extra over and above the $5,000 EF? Obviously if there was a huge emergency like a job loss or health issue, I could raid those other savings accounts if necessary. 

 

Logistics

I’m thinking I’ll keep separate CapitalOne 360 savings accounts for my semi-annual fees and car repairs funds. But for the new car fund money, home repair money, and emergency fund….where should I keep that? One option is the e-trade account where it earns 4% interest. I know that’s certainly the safest bet (above investing in mutual funds, etc.). Is that what the BAD readers would suggest? It just pains me to think of that amount of money (combined approx $40k) sitting in a savings account when it could easily make double ROI if invested. I’d love opinions on this.

Regardless of where this larger pot of money ends up, it will now all be in a single pot (not separate accounts), and I plan to track it with a simple spreadsheet. I still just like the psychological piece of mind to know I have “X” amount for home repairs or “X” amount toward the purchase of a new car.

For those who are “lumpers” (putting all savings in a single account) – do you use a spreadsheet to track what the money is for? Or is it all just there in one pot and you use it as needed regardless of the expense? Just curious how others handle this type of budgeting.

 

I welcome folks’ opinions on 1) the logistics of where/how you save and whether you track the savings in a spreadsheet, and 2) what does fully funded look like to you? Weigh in on my thoughts, above. Is this pot of money too much/too little, etc? Any other factors that would influence your decision?



Mar 10, 2025    |      0 comments

3 Things You’ll Need to Put On Your Spring To Do List

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Spring is the season of renewal and growth, making it the perfect time to tackle essential tasks around the home. After months of cold weather, homes often require some maintenance and improvements to prepare for the upcoming warmer months. By focusing on the structure and systems that keep your home running smoothly, you can both increase the value and ensure the safety of your household. Here’s a look at three key areas to address this spring that not only save you troubles down the road but can potentially save you money as well.

Inspect and Repair Gutters

Gutters play a critical role in safeguarding your home by directing rainwater away from the foundation. When they’re clogged or damaged, rainwater can seep into your basement or cause structural damage, which can be costly to repair. Regular maintenance is crucial; Town Building Systems states that 99% of gutters eventually fail, often due to neglect.

Cleaning your gutters annually, or even bi-annually, can prevent common issues such as water overflow and ice dams. In doing so, you can extend the life of your gutters and avoid unexpected expenses on repairs. Additionally, investing in gutter guards can reduce the frequency of cleaning, saving you time and money in the long run.

Beyond cleaning, inspecting your gutter system for signs of rust, pulling away from the house, or other damage is imperative. Prompt repairs can prevent more significant issues like leaks or water damage to your home’s exterior. By investing a little effort and money now, you can avoid hefty future repair bills.

Check Your Furnace

Spring is an ideal time to assess your heating system, as it will have worked hard over the winter months. Performing maintenance now can help ensure it operates efficiently next winter. According to Forbes, the average lifespan of a furnace is 15 to 20 years, but regular maintenance can help extend its life.

Routine checks include cleaning or replacing filters, inspecting ducts, and ensuring vents are unblocked. These simple actions can improve efficiency, potentially reducing energy bills and saving money. Hiring a professional to conduct a thorough inspection can also identify issues early, preventing costly breakdowns.

Consider setting aside time each spring to carry out these maintenance tasks or schedule a service appointment. Keeping a furnace running efficiently not only aids in saving money through energy conservation but also ensures your home remains comfortable year-round. The cost of preventative care is often far less than emergency repairs or a complete replacement.

Evaluate Your Septic System

Homes with septic systems need routine inspections and maintenance to avoid failures that can become costly and hazardous. As noted by Governing, between 40% and 90% of septic systems in some areas might be failing. The cost of repairing a septic system can be substantial, impacting both the environment and your finances.

Inspecting your septic system involves checking for leaks or backups that could indicate a problem. Having your septic tank pumped regularly, typically every three to five years, is essential for its proper function. This simple task can prevent significant, costly damage to your property and protect groundwater resources.

Spring is a great time to review any ground signs of malfunction, such as pooling water or odors that may indicate a failing system. Being proactive can prevent major issues that might require extensive repair work or even complete system replacement. Regular maintenance is certainly an investment that can save money and avoid the stress associated with septic system failures.

Dedicating time to address these necessary home maintenance tasks each spring can ensure your property remains in top shape. Routine upkeep of your gutters, furnace, and septic system not only enhances their longevity but also prevents costly repairs, saving you money over time. By planning ahead and caring for your home’s vital systems, you’ll enjoy a safer, more efficient, and well-maintained living environment.

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