I think this is a very smart idea. Many homebuyers are not prepared for the change in their lifestyle (i.e. money to spend) that it entails.

I might suggest you throw in a little extra to see what it will really be like. An older house will invariably have things that need to be fixed (water heater, windows, etc..) and a newer house needs improvements (shelves, hooks for hanging things, etc.) that you will spend money on.

Good luck!

Funny you should mention that idea...I've seen a neighborhood credit union & have been thinking of a savings acct. w/no atm card, checking, etc...just to stash $$ into, I'm also not into the "hassle" & I know I'll leave it alone that way, lol.

Azarae D.

Jamie -
That's a good idea. Out of reach makes it good for emergencies.

When I was married, I started having a set amount from my paycheck sent to checking for living expenses with the "surplus" going to a savings account. DH did the same with his pay. What with raises and promotions, and keeping the same cheapskate lifestyle for several years, we had more than enough for a down payment on a house.

I actually have a house now, so my "extra" goes into the house I have as far as fixing things in order to get ready to sell it when we get married (we will be getting a new house - putting a modular on a foundation). But I do plan on putting any extra I have leftover at the end of each month in that account as well - if I can remember to take it to the bank! LOL

I do agree though - for those who have never owned before, putting extra aside for all the stuff you will need on top of the house payment is very, very smart. :-)

I agree also, we had a bit put aside for when we moved into our home...and the worst came, we had to evict the lady who we bought the home from, for some reason she would NOT move out after closing!

It sucked all our savings to keep our U-Haul for an extra week & rent hotel rooms, etc... as we had it planned to the day on moving out of our rental apt...it was(still is to think of) a nightmare.

Definitely pack away more than "extra" for buying that home...

Azarae D.

This is a wonderful idea. I have one account that is my own apart from the family ones ....it isn't a huge amount by any means but is totally mine and I feel like a millionaire having something of my own apart from the family finances.

I have our short-term savings in a credit union from my last job. When I worked there, I could go to the ATM in the lobby. Now that I work at a different company, I'd have to drive 15 miles, so it's really inconvienent and that works GREAT for us! I do have online access to it and an ATM, but I leave the ATM card at home and only get it out to make deposits. Speaking of deposits, any checks we get - birthdays, refunds, rebates, etc...I put in savings. I've only budegeted for my paycheck, so they don't need to go into checking!

I cringe whenever I read "fiance", no matter where it is printed.. newspapers, forums, whatever. Do you have a set date for the wedding?

If so, I'd like to send you a wedding gift. email me at clamshell@hotmail.com

Oops.. forgot to tell you to specify ThatHomeSite as the subject. If not, I'll just delete it.
:)
Gina

I deposit all checks into savings, too--esp. the childcare FSA reimbursement, and the medical reimbursement.

There is nothing like an automatic deduction that is funnelled into your savings account! And wise are you to limit your access to that account if you lack the discipline to leave it alone; GOOD FOR YOU. That's a hard thing to do, initially.

This is the first time I've ever had access to a tax-deferred retirement account and I've calculated the percent increase in my earnings and directed every one to that account. I save money and reduce my taxable gross at the same time. I am stunned and how EASY it is to save and that's coming from someone who has saved money from every paycheck she's earned... .

Be patient, be frugal in your lifestyle (live BELOW your means) and you'll be AMAZED how fast the shekels add up.

Jaime_MT, I too keep my savings account at a separate bank although my fixer upper sure does swallow a lot of money I'd like to put there. One tip from one of the Suze Orman broadcasts-make yourself a "maintenance account" to contribute to as well as you are saving, this way you won't be tempted to go to the absolute limit on the mortgage payment and then not be able to handle household emergencies, and/or basic maintainence which if put off can cost big bucks. Hadn't thought about that myself. Good luck with your savings, don't forget to have some fun, maybe a potluck/swap with your friends, game night, etc.

No worries, Cindy - I budget monthly for little "splurges"...after living for so long (my whole life, almost) on so little, I know well the value of spending on yourself occasionally so you don't feel deprived. :-)

They call that a Single Small Splurge, don't they?

Joyful (Semi-annual [more or less] Slight Splurger)