We have always had just one savings account. I would pull from it in emergencies and then I’d be depressed we HAD the emergency (aka, the car or something in our house breaking that we weren’t able to absorb from our monthly budget).
Then, my friend Lara told me we should have a short term savings accounts that we absorb stuff like that from, along with a long term savings account that we think of as a financial reserve.
And that fixed it.
We now have 2 accounts, and when we have to pull from the one we scamper like squirrels to build that back up. Then, once it’s back up we split our savings between the two (some how adding in fun to that mix) and also paying down our mortgage.
It does seem like savings is always a balancing act. Trying to figure out what accounts, if you should start an IRA, or build 529’s for your kids. We’re slowly building all those things, and I think a lot like weight loss it’s a day at a time that you do that kind of stuff.