5/01/2014

My Money, My Choices - Level 3, Activity 7 & 8

A curveball account...now this is something that Jordan and I have never had...though perhaps it is and we've just been calling it our Emergency Fund.  Gail believes that everyone should have a curveball account to help deal with those unexpected expenses that you don't wan to throw your budget off track....maybe this is where those vaccination vet bills should have been paid for instead of from the emergency fund.

This is an account that doesn't need regular contributions, but does need a place to start.  It can be $200-$1,000 or more.  Activity 7 is to create the account and Activity 8 is to fill it.


Do you guys have a curveball account?  Do you think it's necessary...or do you budget so well that you don't need it?

I feel like as long as Jordan and I are continuing to save towards our emergency fund - it doesn't really need to be a separate account...another thing to manage...but it probably couldn't hurt to try.  I moved $500 from our emergency fund, into the curveball account to hopefully curb the use of our Efund for...curves.


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10 comments:

  1. Hi,

    I actually really like this idea since I have issues with using my EF money for anything other than an emergency. There are those expenses you can anticipate and those you can't and that is where I think a curveball account would be beneficial. I would like to leave my EF for situations where I have no income coming in and I have to pay off the house and car and these are anticipated expenses but since I am unemployed it's an emergency. My only issue would be where to put the money, I don't like having too many different accounts and I don't know if I am organized to have different monies in the same account and keep track of what is what.

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    1. Hi! My husband is the same way - he doesn't like having lots of accounts...we've compromised and have more than he would like, and less than I want. But we also bank online with ING and they make it really easy to have multiples.

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    2. oops...tangerine now, not ING

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  2. We have a projected expenses account which is money we know we will have to spend at some point in time throughout the year. This is used so it doesn't disrupt our budget which many people fail to plan for then wonder where they will get the money from. An example would be we pay our city taxes on our own so we save xamount each month in the projected expenses account from our budget. When the bill comes due we have the money saved. Same goes for getting our vehicle winterized, our A/C check each year, CAA memberships etc. Every month a portion of each budget category that is a projected expense gets saved. It has helped us to not worry about where we will get the money from. I wrote a blog post about it and have our free budget spreadsheet as well for the fans. :) Mr.CBB

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    1. what a great idea! It sounds like a good way to really formalize the curveball account.

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  3. Yes, one of my goals is to have a curveball account in place by the end of the year (preferably sooner). Here is a good example ... usually my bunnies cost me $25 or less per month for food, bedding etc so that's what I have in the budget. However, when I have to take them to the vet its gonna cost me upwards of $100. This is not an emergency, I know I'm going to have to take them to the vet eventually. So, I don't want to use my EF for this but it would also kill my budget and I wouldn't want to go into debt for it either. Right now if it comes up I would use my planned spending account but since that would put me further out from our other goals (backyard project, travel, etc) I want to have some money set aside for budget overages. I just have to get to the set level for my portion of the backyard project first and then I'm moving some savings into curveball and Christmas accounts. Lots to do and only 8 months left to do it in!

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    1. Hmmm it sounds like there really is something to this curveball business - like an account for all of your annual expenses.

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  5. I don't keep a curve ball account although I am totally okay with using my emergency fund for any items I didn't plan for. Frankly I get confused when there are so many accounts with allocations. I only have a chequing and savings accounts so I just roll with the 2.

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  6. Hi Jessie, just catching up on your blog. Normally I wouldn't comment on an older post but I just had to with this one because I wrote a post on curve balls yesterday. We keep everything in our e fund but maybe I should be splitting it out. As you say, Tangerine makes it easy but I don't know if I want my money split out from my main bank. Need to think about it some more.

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