Our savings account is just funny money used for non essential items like vacations, a new RZR, new trailer, whatever we want. I only call it a savings account because that’s what the bank calls it, it’s really worthless for it’s intended use, just a better place to put money than the checking account.

I want the car savings account separate from that so it’s not spent until needed.

Our retirement accounts are already maxed. I’m starting a 457K this year that I can put $19,500 into per year, other than that, we are maxed.

I don’t want a car payment ever again, regardless of what the interest rate is. We don’t buy new cars, we buy used and save the initial loss of value, thus hopefully making cash purchases easier.
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Why don't you just put it in the bank in your checking account and leave it there until your ready to buy ?.The finance man where we bought this buick pi$$ me off with his finances so I told him i'll just pay cash for it.He thought I was bluffing but now i'm waiting on the title and it feels good to be debt free.

Why don't you just put it in the bank in your checking account and leave it there until your ready to buy ?.The finance man where we bought this buick pi$$ me off with his finances so I told him i'll just pay cash for it.He thought I was bluffing but now i'm waiting on the title and it feels good to be debt free.
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Have you ever had your checking account hacked? It sucks

Have you ever had your checking account hacked? It sucks[/quote]
Yes,once but the bank caught it but I wasn't worried as the bank said they would cover any loss.Try a Texas savings account then.

Yes,once but the bank caught it but I wasn't worried as the bank said they would cover any loss.Try a Texas savings account then.
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It cost me money to have the bank fix it and took weeks. I’d rather not have that issue with lots of money. I think it cost 10% of what was taken

If they can get to a checking account they can get to a savings acount. If I overdraft my checking it will take money out of my savings to cover it.

I probably used the wrong terminology, they used my debit card to purchase a bunch of Apple products. I don’t have my accounts setup to protect from over draft, never had the need.

Lots of old school thinking here and although I do appreciate it some purchases are better using other people’s money. Especially with today’s rates. The world is changing. Let your money work for you.

We have checking accounts with the bank,savings accounts with a Texas credit union and not affiliated with each other.

Somebody in Florida tried to use my debit card number and it thru up a flag.I was called by my bank and was asked if I was in Florida and I said no,she said she didn't think so and they locked down our accounts.

I disagree with most of that. Everybody’s situation is different. I know my wife would be trading this payment for another payment if we didn’t pay it off, and she would never stop doing that, she’s done that for the past 15 years. While the interest rates were always low, I can’t add up how much money she has wasted.

Roth IRAs for you and your wife. Principle can be withdrawn anytime penalty free. Only the gains have to remain in the account to avoid the penalty. Invest according to risk your willing to take. Can be set up in 15 minutes with most brokerages and you can get a checkbook to withdraw that principle when needed. Great way to build an emergency fund. Or "car fund".

^^^Totally agree. Savings accounts, money markets, CDs, Checking accounts....fine for paying bills, but completely worthless for growing your balance or having your money work for you.

Even debit cards...I haven't used my actual debit card in years (other than a few ATM withdrawls). That's leaving money/points on the table if you are able to pay off your credit card balance each month. Merchant's mark goods/services up by 3% to cover CC fees. Anyone who uses a debit card is essentially picking up the tab for everyone else who uses credit cards. And credit cards provide much more fraud protection than a debit card.

Dave Ramsey

Can’t stand that guy. He preaches about how to unfuck your life after he’s had. I believe, 2 bankruptcies? He gets rich by selling a book that teaches you what you should’ve learned before graduating high school.

We do not either but that flag catches our cards for fraud. I hate this time of the year as I have to call and up the limit to buy software or E&O in november but the protection they provide is invaluable as you know.

Big pig I understand what you mean by trading in for a new car just cause mentally it seems like the same payment. Kinda like setting your alarm clock 5 minutes ahead my wife does that. The fact is she knows what time it is. I laugh and ask her if she’s tricking herself. Point being is yes only works if you pay it off. Borrow at 3 and get a better return on your money somewhere and your ahead. Other people’s money is one of the biggest strategies there is.

My wife lives off the CC earning us airline miles. I think last year we put $69,000 on the CC and never carried a balance. This car fund account isn’t to grow wealth, it’s there to have a separate place to park money for when we have to make a major repair or buy a new vehicle. We will continue to put money into it every month as if we were making that vehicle payment and it would be great if it earned something more than the pathetic savings accounts at banks do.

We also just loathe having a payment on anything, at least I do. Id pay my cell phone bills and all the other monthly crap once a year if I could.

Instead of trading a payment for a payment on a vehicle your going to make the same payments to yourself for a vehicle. Got It. Sounds like the same thing to me, if your plan, which you’ve said multiple times, isn’t to build wealth with this money.

Correct. Instead of her trading payments for payments for the next 15 years, that money will go into a separate account until we need to replace one of our vehicles, which hopefully won’t be needed for at least 5 years. If it was up to her, she would go out and buy another $70,000 vehicle and keep it for 2-3 years and repeat the process.

I bet it doesn’t matter and you’ll both have a new car in two years. Put it where ever it’s easiest to get to and let your investments be your investments and this be a fund you’re going to need soon

For the record, your wife and I might be related…it doesn’t matter how nice or how paid off, we get tired of getting into the same box for much more than a year or two. I’m sitting at 18 months and started looking this week

I'm the opposite, It takes me about 100,000 miles before I really get use to and like a vehicle. At that point im comfortable in it dont give a carp if its clean or dirty or scratches and it drives like an extension of me.

Do you also refinance when or if rates on your vehicle drop? Is new school going all in on debit leverage to the hilt to maximize market investment amounts?

I refinanced my vehicle when rates dropped.