Can You Have Too Many Long Term Savings for Spending Accounts?

A while back, I wrote a post that I still find to be an extremely valuable, but somewhat idealistic, way to manage your finances on Eker’s Jars budgeting. One of the accounts he recommend setting up is called a Long Term Savings for Spending account. He recommends saving 10% of your income towards this ‘jar’ and you can divide it into sub-jars if needed.

I also found and use the amazing site SmartyPig for Long Term Savings for Spending accounts. This amazing system has gained so much in popularity, its now being bought out by BBVA Compass.

So, now that I am fortunate enough to be making a little more income with my new business, I am eager to get beyond debt and expense payoff, and focus a little more on the long term savings for spending accounts. However, I think I have gone of the deep end. When I actually make a list (ie mini savings accounts) of all the things we want to save for, it is daunting and frankly, way more than 10% of our income. I have reached $5K in a Contingency Fund and have decided that is enough for me to warrant putting funds towards long term savings for spending now.

Here’s All the LTSS Funds I’ve Got Set Up:

  • Savings Goals:
    Car Maintenance Savings
    Laptop Savings
    Lasik for Ariel
    Living Room Furniture
    New Baby Costs
    Presents
    Travel
    Vaccum / Grill
    Weddings
  • I’m thinking this is largely because of the stage of life we are in. Not quite thirty, wanting to make large purchases and build a family. We have our house on the market, and ideally would like to have 60 to buy the next house we want. But that is so unrealistic when you actually look at the numbers. Needless to say, I’ve decided that Eker’s Jar’s needs an upgrade that should be different based on your AGE and/or STAGE in life.

    Also, I have so many graduations, weddings and gifts, that my jar for GIFTS is truly for gifts, not charity or giving in the sense that Eker intended.

    So, ideally I would like to mimic the jars theory that Eker has, but in reality, I believe it is better suited for a higher income, slightly older demographic than my family.

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