I guess that because Barb and I started out in occupations where we got paid once a month, it has been fairly normal to pile up some extra cash for mid month expenses. We always felt good if at the end of the month there was any left. Barb has in the later years has kind of insisted that we end the month with enough of a balance to carry over for a couple of months if necessary. In fact, I often laugh that most people don't start the month as well off as we end the month.
One additional thing we have done for several years is pay our own taxes and insurance on the house(s). We fought with the finance companies over the escrow accounts and she was never happy with them. Once we got them paid for we were our own escrow account. I think that in the past we also underpaid out taxes so we also paid come the middle of April. For those reasons, we almost always try to have a little bigger nest egg during income tax time in April and Property Tax time in May.
The one thing that has kind of thrown a wrench into the mix is that one of our renters has changed jobs in December two years in a row. He is good for the money and always pays it back but had he paid December on time I would have had 13 months rent last year. He didn't so I didn't. That does happen to be first half of property Tax time and Insurance on the house time so thank god for a little extra.
A recent discussion with Jenn covered a lot of subjects and one was that we do not feel that our kids get a good enough education in school on financial management. It is beyond me how a young couple living together would co-mingle their finances and buy cars and a house without the legal protection of marriage. When they do go their separate ways, it often leaves one or both tipped over on the value of their car and one with the house and no way get ahead for either one. Yes, I fully understand wanting a car that will get them from point A to point B often and without trouble. My rule is only one new car in a lifetime unless you win the lottery.
I hope you aren't too bored by this discussion. I know that a lot of people out there are trying to reduce their consumer debt and their weight after Christmas.
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