what do you use your savings for?

[PrincessFiona]

DH and I are frustrated because our savings constantly get eaten up. We set money aside only to have it disappear.

We did use savings towards the purchase of a cabin this summer, but we felt we would easily put it away again. Instead, we have had 3 big car repairs that ate away at it, as well as a sort of nickle and dimed etching away at it: broken heater *bam* 300, etc etc.

I don't think we regret buying the cabin. We don't. We are just frustrated that everytime we set $ aside we have to take it back out lately. Retirement $ is not an issue. It's just our regular savings account taking a hit.

[ladymoreta]

We also use our savings for home and car repairs, as well as a temporary place for less frequent bills, like our AAA membership and semi-annual car insurance. I also feel like we just can't seem to build it up that much, but I guess that's the point. At least it's not costing us interest that we'd have to pay on credit cards, but it's really frustrating to see it hovering at such a low amount. We don't have the recommended [however many] months of salary saved up, just enough to get us through a big repair. Once we get our debt paid off, or at least the higher interest part of it, we'll use our savings account to save up for big things, like new furniture or replacement vehicles.

[MrsC]

We have two savings accounts. One is linked to our checking account and we have been dipping into it this year since we are back in training but just for bills/necessities. We have also used it in the past to pay off our cars and for renovations etc. The other account is separate and we try not to use it at all, although we may for a down payment on our new house.
Saving has been relatively easy for us because we live well within our means. We don't spend much, shop sales, eat out maybe twice a month and buy quality items that we use until they are worn out. Our only splurge has been on travel in the last few years and that will change now that we have a child. I know our expenses will grow as our family grows though.
I think with a home there is always something that needs to be fixed or upgraded. With our current home, we finished each room to a point we were happy with and then called it done, no more furniture etc for the foreseeable future. Of course we will start all over this year with a new house

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[OrionGrad]

It sucks when home and car repairs take a big bite out of our savings, but I try to remind myself that those types of expenses are what it's there for. In the last couple years, we've also used our savings for home renovations (kitchen and patio), paying off a student loan in full, and a big medical bill after DS's birth. I don't feel like ours is eaten away by nickel and dime type things as much as major expenses that are unforeseen (like 2 big car repairs in 2011).

[peggyfromwastate]

My kids' expenses kill us. If we didn't have kids we'd be doing so well!!! It's the tournaments, the school projects, the school trips (yay for twins-- twice as many kids going on the band trip to disneyland...). These are above the regular budgeted amounts for club sports-- the fun extras that the kids love and the parents stress about how to fund...

When we were homeowners it was always this or that repair... New dishwasher, electrician for faulty switch, stuff like that.

And our cars.... With our youngest car having 80K miles and the oldest over 170K... I hate oil changes now. They are ALL $500 or more after you fix all major/critical stuff. For instance, our last oil change on the Camry said "leaky tran" but we opted to do nothing. Wanna bet next oil change it's not an option to leave it??? Sigh.

[MrsK]

We also use our savings for home and car repairs, as well as a temporary place for less frequent bills, like our AAA membership and semi-annual car insurance.

This. Also things like moving expenses, medical bills, trips, reducing debt, college savings. Prior to finishing residency, we were dipping into it monthly to cover the gap that remained when I stopped working suddenly even though we reduced our costs.

Every time we have "found" money such as gifts, refunds, bonuses, we deposit it in savings. Also, 10% of net income goes to savings. We have an agreement that we keep a minimum balance in our savings account. If we get over that goal, we move money to pay debt. Once the debt is paid, we move excess to college savings. Lately, a big chunk has gone to pay for Lambie's birth, medical bills for me and for her, and childcare since I've needed help the last two months. It's good to be able to pay for those things without going into debt. Right now, a very low interest car loan is our only debt. Per the loan terms, we cannot pay it off until a year has passed. So, we'll probably pay it off next year or the year after. I only say the year after because we plan to buy a house and I'll probably spaz out when we do. (The house money is the proceeds from the home sale we had last Fall which have been in an isolated account. )

We are pretty good at saving but don't have as much saved or invested as I'd like. DrK feels more secure than I do which makes sense because he's a breadwinner and he grew up not worrying about money.



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[Ladybug]

Taxes. Is this a real question?

[SuzySunshine]

We compartmentalize our savings - everything is earmarked future car, house, emergency, travel, gifts, etc. So we use it for what we need it for when the time comes - now thats not to say we couldn't and wouldn't dip across categories if necessary but that was one goal as we finished training. We live on half of DH's net salary and save/invest/give the rest.

[houseelf]

Taxes. Is this a real question?

Here, here. We're getting hammered this year. I'm more than a little salty about it. Disgusting.

[PrincessFiona]

Taxes. Is this a real question?

We will have zero savings after taxes this year. That's just an honest confession. With 5 kids, and one in college, there isn't enough money for us to save more than we are. It is infuriating.

Hopefully, next year we'll be back on track. It's unlikely though because my van has 204,000 miles on it. I know where our new savings will go. #cantgetahead

[niener]

We have the *worst* luck with cars and we both have terrible teeth, so a big chunk of it goes to car repairs and dental work. Home repairs, unexpected medical bills, electronics when things die (cell phones, laptop, etc) takes up most the rest. Savings rarely gets used for anything fun.

[spotty_dog]

We're fortunate that at this stage we can pay cash for all but the biggest, pre-planned expenses. So our savings mostly goes untouched. We've bought a car and painted the exterior of our house from savings. But of course, also taxes. Although it's in the same "bucket" with the rest of the slush fund, it's an extra amount all saved up and ready to go.

In medical school we tapped DH's savings (from his high school jobs) to buy a more reliable car before we moved for residency, and to pay for the move. (Then I replenished the pot a little by working for a few months before baby came.) In residency we tapped into what was left (which at that point also included some savings bonds that had matured) a few times to pay for rent and medical bills, before he was able to moonlight and really bolster our savings.

[The White Coat Investor]

This is all the stuff the savings is for, right? As long as you're putting enough away for retirement, college etc, I think it's perfectly fine to blow your savings on vacation, car, cabin, dentist, repairs, taxes etc. That's what it is for. Far better than sticking it on a credit card.

[PrincessFiona]

True. I just feel nervous that we don't have a little more set aside. It isn't accumulating right now. I would love to go back to having a buffer in our account. we have a vehicle with 200,000 miles on it and no accumulated savings to replace it. That means car loan. For some reason, this really bothers me!

[alison]

We've used our savings for a down payment on a new house and on home improvement. Our house is the cheapest and shittiest on the block, and so it feels good to make improvements on it.

Our emergency savings will take a small beating in the next couple of years, because we'll have to take several trips back to Europe to visit dh's family.