Post # 1
SO and I share a bank account. He wants to keep a “cushion” in there so we’re not cutting it close at the end of the month. I prefer to not keep a cushion as that way we don’t overspend. If there’s a cushion, I feel like it’s easier to just spend a little more then we actually made and we might not realize it. Not having a cushion allows us to know that when the money is gone, IT’S GONE and there’s nothing left to spend, I think it’s a good way to keep our spending under control. Do you have a cushion in your checking account?
Post # 3
I keep a cushion of about $10,000 in my current account, anything over gets transferred to savings. I like having a back up in case of an emergency. I tend to live well within my means, so I don’t get tempted to cut into that cushion unless I really need to.
Post # 4
@Ninteenthchance: no I have overdraft protection For this reason. My money doesn’t earn interest in my checking account so I keep as little as possible in it. Make your money work for you!!
Post # 5
Yes, we always have at least $1,000. Neither of us can be bothered to keep track of exactly to the penny what we’ve spent or how much the bills are. We know if we have a bill that’s less than a couple hundred we can pay it and not worry about it. A couple times a month we check to make sure we haven’t dipped too low and have transfers scheduled to cover all the bills that are due.
Overdraft feed are expensive and a huge waste of money if the money is just sitting in your savings. Spend cash if you want to strictly control what you spend and put that tight of a limit on it. You get $100 a week and that’s it, period. That’s much easier (and more concrete when handing over a $20) than keeping track of every transaction. Especially when you share an account! You don’t want to end up with a $35 fee because he forgot to write down that he spend $5.47 on lunch and you thought you could put the last $37 in gas in the car.
Post # 6
My bank account is no-fee unless my balance falls below 1500, so I try to keep it above that, and basically that 1500 is my cushion — so I have an incentive to leave the cushion alone, but if i dip in to it i’m only out like $4.
Post # 7
@Ninteenthchance: I keep a cushion of about $300 in my checking account and then I have $10k in savings. I don’t see the point of keeping too much in my checking because it is not earning interest. In checking I earn $11 a month in interest, which isn’t a ton of money, but it is better than nothing.
Post # 8
Not really. I am an avid user of my check book app and know exactly how much I have at all times. I keep any extra money that I don’t need for the month in my savings. If I have an emergency, I can transfer funds or use my credit card and pay it off with savings.
Post # 9
We always keep a cushion of at least a couple thousand dollars so we don’t actually bounce a check or something like that.
Post # 10
Ha! I wish I had the money to keep a cushion in my checking account! I save a lot for retirement (IRS max) and have money in an easy-access savings account, but generally I only have maybe $100 in my checking account when I get paid (and that’s on a good week!).
I can’t imagine having thousands (or heck, even a thousand) dollars just sitting in there – unless it’s one of those rare interest-earning checking accounts, that’s just silly!
Post # 11
@StL.Ashley: +1 on your second paragraph!
I keep a ~$100 cushion in my checking. There’s no point in leaving extra money in my checking account, which has even more terrible of an interest rate than my savings. If I have additional expenses above what I’m expecting, I just transfer some back from a short term savings account. I have a few different sub savings accounts to save for different things.
Post # 12
We keep several thousand in checking for a cushion. It’s our emergency money since we are not touching our savings for many years. We typically end up with a lot more above our cushion but once we get close to that cushion range we don’t spend anymore.
Post # 13
Yes, I keep a cushion of a couple thousand in my checking account. Its way too scary to have almost nothing left in there at the end of the month. It doesn’t make me spend more; I know what my budget is and I stick to it.
Post # 14
- Wedding: October 2014 - Restaurant
I keep my savings completely seperate from the checking account, so I usually like to have about $200 in there as a cushion.
Enough for a little fun if it comes up, but not enough that I could blow without thinking it over long enough to transfer money from savings.
I seriously love Excel though and always know how much is in there at all times.
Post # 15
@Ninteenthchance: I really try, but when I lost my job my cushion disappeared. One of the main reasons I want to get a job is so that I can have that cushion again. Living on the razor’s edge is just too stressful.
Post # 16
It’s rare if we do. Usually if we have extra money in the checking we put a good chunk of it into our savings account or our Roth IRA. That way we don’t just spend money cuz it’s in the checking account. It’s worked well for us.