Idiot-proof your finances!
When you have kids, saving money is next to impossible. If it is in the bank, it finds its way to some kind of expense, incidental or otherwise, somehow...diapers...milk...new underpants for the potty trainer in distress. Then, when you look back and try to figure out where it all went, it is a mystery! I have this theory that it all goes where the missing socks go when they enter the dryer...but that is a topic for another day.
To combat the unexpected expenses that seem to creep up on us almost every month, we started what we call our "Survival Fund." First, we did the budget to determine where our money was going each month, and picked one thing to work to pay off. It took nearly a year, but we managed to pay off my car (first time ever without a car note)! Then, instead of paying good-ole GMAC that cash every month, we had those funds diverted directly from my paycheck into a second account. Now, instead of my check being delivered in one direct deposit, it goes through in two separate transactions to two accounts. In one I auto-deposit $250 (formerly earmarked for my car), while the remainder needed for bills lands in my primary account. I set it up with the payroll department where I work, and it is perfectly idiot-proof, which is most defnitely what we needed! This way, we never see the money, so we don't miss it, and we somehow manage to save a little each paycheck, something we never thought would happen!
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