Over the last few months, I started transferring 10% of my gross pay to my Emergency Fund again. I used to do this, but I stopped when my ING Direct Emergency Savings Account plus my Roth IRA were at a sgnificantly high level to pay for several months of expenses. I started transferring money directly into the Emergency Fund again so I can get to the point where I wouldn’t have to withdraw my TIAA-Cref Roth IRA contributions in a dire emergency. (You can withdraw your contributions to a Roth IRA at any time, tax- and penalty-free.)
I also now transfer my take-home pay above and beyond my base salary — basically the money I take home after taxes for working overtime — into a special Emigrant Direct Overtime Fund. I do withdraw money from this account to pay for treats for myself once in a while, but sometimes the money from this account is necessary to pay for regular expenses.
My girlfriend (Amy) and I set up a jointly-owned account at ING Direct. We collect our loose change and every few weeks, we make a deposit. The two of us sell old books on Amazon.com and any net income (minus shipping expenses) is deposited here.
I also have a super-secret “Amy Fund.”
Updated February 6, 2012 and originally published December 16, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.