I have personally struggled with credit card debt for several years, but I have finally paid off all of my cards thanks to money saved during my deployment to Iraq. Now, my wife and I are determined not to slide back down into the hole of credit card debt. We have made a promise to each other to pay for everything from now on with the cash that we have saved. If we do not have to cash, then we do not get to purchase the item.
In order to meet this goal, we have opened several savings accounts for our many different saving goals. This past year, we opened a new savings account that we nicknamed “Vacation Fund”. We have also been trying to save for the down payment of our first house this winter. So, we have a “Down Payment Account”.
I love how most banks allow you to nickname your accounts and also open multiple accounts. These two things go hand and hand. And, they allow you to save for specific goals. This week I’m also opening a bank account for “Christmas and Birthday Presents” and other one for “Car Repairs”. It is too easy to take money out of a bank account that is just titled, “Savings”. But, if your bank account says, “London Olympics 2012”, then you might think twice about raiding it for a night on the town at Old Chicago’s.
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