The 3 Savings Accounts You NEED TODAY!

emergency funds savings

If you’re going to save money -- and yeah, you should -- then you need to know how to save, where to save and how much to save.  


This blog is about where to save and how many of your precious pennies to save.  Yes, in a bank or other type of financial institution.  But, I’m talking about the accounts you need to set up, regardless of where you actually put the money.


(If you want to know more about how to save check out This Blog)

The 3 Savings Accounts YOU NEED TODAY

Yes, three.  Why three? Because having all of your savings in one account makes things muddy and difficult to see.  It’s impossible to know what’s for vacation and what’s for emergencies.  Plus, take it from a reformed Saver, having everything in one account makes it really easy to just take a little bit for this...and a little bit for that….yeah.  Been there, done that.  Not anymore.


By breaking up your savings across these three accounts you’ll know exactly where you are with your savings goals because each one serves a very specific purpose.  Having three helps you keep an eye on how you are doing with each one of those goals.  As each savings account balance increases with each deposit you make, you can visually see how much closer you are to your goal each month.  Which - score! - makes for a very happy day.


The three savings accounts everybody needs are:


  1. An Emergency Fund.  This is the one you start with FIRST
  2. A Vacation/holiday fund.  No more putting that vacation or all those Christmas presents on a credit card
  3. The Because it Pleases Me fund.  This Fund is my own creation and could be where you’re saving for a house, a new car (or one that’s new to you), or a new couch.  Whatever pleases you ;-)


Let’s take a lookie-lou at each one below, shall we? 


Emergency Fund

I call this my “Rainy Day Fund” →  because it ALWAYS rains!  

The Emergency Fund is the first savings account you need to start.  Did you know that the average American does not have enough savings to pay for a new tire?  


That’s right, the average person in American would have to pay for a new tire with a credit card.  Then pay off that tire over months, incurring additional interest and making the cost of the tire even higher!  


Your “Rainy Day Fund” covers the big expenses in life you can’t control, but which you need to plan for.  Like getting laid off, getting sick, or, god forbid, a parent or child getting sick.  These are things that we all hope don’t happen, but we all know could happen.  The Emergency Fund helps us prepare for those events.


Before the pandemic, I used to feel like three months' worth of net paychecks was probably enough for the average person.  


But, the pandemic pulled the rug out from under all of us and it changed my thinking on Emergency Funds.  Now, I feel like 3-6 months of net paychecks should be the bare minimum in my emergency fund. 


I know, it’s a lot.  But, Emergency Funds are for rainy days, and during the pandemic, it rained a LONG TIME. 


Remember though that an Emergency Fund is a MARATHON not a Sprint.  So, let’s talk about how to start one.  Because you don’t just get off the couch and run a marathon, now do you?  


Nope, we gotta start with a nice, long walk first....


How to START an Emergency Fund

When it comes to saving, the most important thing to do is START.  Start small and be consistent.  A little bit each paycheck adds up after a few months! 


Try making your first goal one paycheck’s worth of savings. Prove to yourself that you CAN be a saver.  


Take pleasure in what you’ve saved, even if you don’t think it’s very much.  If you’ve never been a saver, saving one paycheck’s worth of money can be intimidating!  


But, saving, and paying off debt, is a lot like battling my muffin top.  It’s those small, daily, consistent choices that get you to your goal.  


Then, as soon as possible - AUTOMATE your savings each month.  


If possible, have your employer direct deposit the amount you are saving straight to your savings account.  That way, it never touches your checking account and lowers the chance you’ll spend it. 


(I want to be your cheerleader!  DM me on Instagram and tell me how much you’ve saved.  Even if it’s just $5 in your cookie jar.  That’s awesome and I want to celebrate with you!)

The Everyday Average Emergency Fund

The Everyday Average Emergency Fund is part of and the start of your regular Emergency Fund.  An Everyday Average Emergency isn’t the extreme event of getting laid off or having to suddenly quit your job because of a family emergency.  


Instead, the Everyday Average Emergency is a just...a Bad Day.


It’s cracking a tooth and needing a crown, tripping on the sidewalk and breaking your arm, or picking up a nail in your tire.  


These are the things that happen to everyone.  They’re just life.  


The Everyday Average Emergency typically costs you between $400 (a new tire) to $2000 (health insurance deductible).  


I recommend saving $2000 towards an Everyday Average Emergency to all my clients, subscribers, and followers as the first step towards their larger Emergency Fund.  


So, if you’re trying to become a saver and you’ve decided that your first goal will be to save one paycheck’s worth of money, for example, then that goal would be the start of your Everyday Average Emergency fund. 


Saving $2000 can sound like a lot, but tying it to a specific “event” seems to help make the goal more tangible for most people.  It’s not just “random money” sitting in a savings account.  That money now has a purpose.  It has a JOB. That money is there to take care of the next Terrible, Horrible, No Good, Very Bad Day.  


The Vacation/holiday Fund

 Ahhhh, sun and sandy beaches.  My toes wiggling in the sand and a tangy margarita in my hand.  Or, maybe mountains and rivers and foggy mornings hiking around the lake sipping a spicy chai latte.  


However you prefer it, we all need a vacation!  Time to rest, relax and recharge is important and it’s even more lovely when you aren’t worried about how to pay for it!  Which is where the Vacation/holiday Fund comes in.


The Vacation/holiday Fund not only pays for vacations, it pays for long lazy weekends at the beach, holiday gifts, and birthday fun.  


In general, we all know about how much we spend each year on our vacation, how many people we’re going to buy holiday gifts for --  and how much we’re going to spend on each of them -- and other types of celebrations we go to during the year.  Think birthday parties, christenings, bar mitzvahs, and weddings.  


If you aren’t sure off the top of your head, then take a quick scroll through your bank and credit card transactions for last year and quickly add them up to the closest $100.  


There’s your starting point for your brand-new, shiny Vacation/holiday Fund!  


Simply divide it by the number of times you get paid in a year, and voilà!  That’s how much you’re going to start saving with each paycheck!  


Bonus points and gold stars if you set up direct-deposit and have the money bypass your checking and go straight into your Vacation/holiday fund dedicated savings account!

The Because it Pleases Me Fund

The “Because it Pleases Me” fund is for purchases big or small that are not included in your regular monthly money plan.  Whether it’s a new car (or a new-to-you car), a new couch, or that fancy handbag you really, really want, the Because it Pleases Me fund has you covered!


I got the name of this fund from my friend Barb.  “Because it pleases me” is her favorite saying when someone dares to question whatever it is she’s doing.  Basically, she’s saying I don’t really care what you’re opinion is, I want this/I want to do this, so I’m going to.  Which to my mind is perfectly legitimate!


So, have I told you about my magical, mythical, perfect-for-me-if-I-can-ever-find-it couch??  


Lemme tell you a story…

Two years ago, I decided that I wanted a new couch.  The PERFECT couch.  It has to be no more than 80 inches long.  The seat depth cannot be greater than 25 inches and cushions can’t be more than 18 inches from the floor because: Short Girl Problems.  I want my feet to touch the floor, at least when I’m at my house!  


AND, oh, by the way, it needs to be PINKBlush PINK.  But, the right shade of Blush Pink.  

There are more shades of blush pink than you might think.  (HA! I rhymed!)


Two years later and I still have not found my perfectly-perfect-for-me blush pink couch.  



Le Sigh.  


But, when I DO find my perfectly-perfect-for-me-couch I have the money ready and waiting in my Because it Pleases ME fund!!


>>>What’s going to be in your Because it Pleases Me Fund?  DM me or leave a comment on my latest post over on Instagram - I NEED to know!!<<<


Three Savings Accounts to Get You Started

The Emergency Fund, Vacation/holiday Fund, and the Because it Pleases Me fund are the three savings accounts every girl (ahem woman) needs.  But, feel free to add to it. 

Saving is a very personal thing.  But, when you separate your savings goals into different accounts, you can see your progress.  You can see that bucket filling up, getting you closer and closer to your goal. 

Having everything in one savings account makes things all muddy and  confusing.  It’s hard to see the amazing progress you’re making.


Also, feel free to add any savings account YOU decide you need!  It’s your little red wagon and you can make it go wherever you want it to!

Okay, let's do this!





P.S., don’t forget to join the party over on Instagram and tell me how you’re doing!


[Are you already a pretty good saver, you’re just looking for MORE?  Then, I humbly invite you to check out my Weekend Money Makeover Workshop It’s a four-part video course of the advice I give my girlfriends - and even my girlfriends girlfriends!  AND it’s FREE right now! Just GO HERE]


Check out these blogs, too, if you’re still looking for information:


How to Start Saving - Even if You’ve Never Been a Saver

What is an Emergency Fund?



**I am not a licensed financial advisor.  I am a money expert and I offer education, tips, tricks and my opinions around money.  You should consult a professional who understands your needs in order to make the best decisions for you!  Additionally, some links in this blog may be affiliate links, which means if you click the link and buy the product I may earn a small commission - at NO COST to You! It’s one of the ways I keep the lights on around here so TYIA! 😉

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