Veronica 

I thought about that last year, but I decided that putting more money into my kids' college funds and paying more towards the mortgage was a better use of the money, as the 529s will hopefully get a return on the money, and the mortgage is at a higher rate than the car loan.  YRateMV....

Veronica I owe about 15k on my car right now, interest rate is below 5% so not too bad.  First is going to be working on my EF and vacation, but I just created a Wish Farm entry for paying off my AC loan, which I picked up when my central AC busted and had to get a new unit.

Veronica 

It's a strategy that sets me up for success.  There's definitely psychology or gameplay in setting my goal at just a little out of reach based on forecasting my predictable inflows for the year. I find the annual saving challenge even harder than the debt smackdown, maybe because I was mad at the debt and it's hard to be mad at building up savings?

I do  know that I am less tempted to blow windfalls, tax refunds, and cash gifts on momentary treats or pleasures because I'll want to get that extra on my stretch savings goal as soon as it comes in. It also encourages me to underspend where and when I can on discretionary categories (groceries, for example) to deliberately squeeze out another $5, $10, $25 here and there. There is a tendency to believe I can't possibly make it without some unexpected luck, so I will really pin everything down really tightly in the earlier months of the year.  January to March are typically my lowest spending months of the year.

HappyDance 

Jan-Mar are lower spending months here too but usually it's because we've felt so broke paying off the credit card bills in December and January.  It's not just Christmas, though, the last 2 months of the year are just expensive when it comes to expected expenses.  My husband has a professional conference he goes to each November, we have to pay multiple large bills (lawn service, life insurance, car insurance).  I also bought 8 months of an expensive OTC medication for my kid (at $50+ a month, it's pricy) and we tend to make end of the year charitable contributions to our charities of choice).  We can afford all of these things, it's just that those are the months when I'm pulling from savings to keep money in the checking account instead of moving money the other direction.  

Veronica 

Veronica said:
When you do squeeze those extra dollars in a particular grocery trip, do you move the money into the savings category right away or do you wait to see what's left over at the end of the month?

 I typically see those discretionary not-spent dollars added in the next month.  A $25 left over in January means I fund groceries with $25 less in February, so I'll add it to a savings category then.

I also like to declare my savings for the month at the beginning of the month, when I budget, rather than gambol along to the end of the month and see what's left over.  I am always super reluctant to pull funds back from a savings category after I've checked in on the challenge and posted the amount for the month.

Veronica it is for a house purchase. 

QC 

Before we saw the COL raise last year, we worked out the numbers, then decided where the money would go.  So about 30% of the raise went into the kids' college funds, and we increased retirement contributions by 1% of salary.  It's harder to spend what we never see and now with YNAB, we only have the income we have to make our budget with, so IMO it's better to preplan raises and expected additional income events like tax refunds or extra paycheck months.

Angel's Mom 

I knocked out my car loan in the 2016 debt smackdown and began saving for my next car as soon as the payments were over with. My initial goal was to save up enough to be able to replace my car and buy a comparable used car (another 5-year-old car) in 5 years (by 2022). Three years later and I'm on track to make an upgrade when I do need to replace my car.  At the rate I'm going ($150/month), I'll have enough to be able to buy a 2-year-old version of my car in 2022, and even though my current car turns 10 this year, I've been taking good care of it and expect to last much longer than 2022.

HappyDance   Congrats on doing so well! It always feels great when your efforts allow expectations to be exceeded.

My truck was 18 years, had 182,000 miles on it, looked great and was very reliable. Then the frame cracked. I was very disappointed it didn't make it to 20 yrs/200,000 miles.  I have the same 20/200 goal for my current vehicle. Hopefully, it will make it and I'll be able to buy what I'm looking for in cash. If not, there will still be more savings for the replacement than I've ever had in the past.

I wish you continued success with your car savings!

Angel's Mom 

Angel's Mom said:
I wish you continued success with your car savings!

 As I wish you too.  Fingers crossed that your vehicle lasts the distance in time needed to save up for the replacement.

Veronica 

We have a Gizmo and Gadgets category for repair/replacement of my phone/computer/the house wifi network equipment and backup hardware (spouse's work pays for his phone and computer).  Also have a kid phone category that gets $20 a month for eventual repair/replacement (we bought my son's new phone last spring for around $225).  The younger kids have been told they get a phone somewhere in 6th grade, so that's a known expense to plan for, and unfortunately, I fear my younger kids may be more prone to losing their phones...   $20 a month isn't a lot, but that's a new iPhone 7 in about a year.

Veronica 

I saved up for and pulled the trigger on new laptop, new smart TV, new iPhone in 2019.  My previous laptop and TV were both 9 years old, and the iPhone was a major step up from the Flintstone flip phone I stayed with through my debt smackdown and my e-fund building year.  I'm now putting $50/month into electronics for the next round of replacements/upgrades.

Veronica We set up the Electronics Replacement categories when we started YNAB in February 2018 but have yet to actually prioritize funding those categories. Considering that our computer and iPad are 7+ years old and our Kindle and iPhones are 3+ years old, it is becoming irresponsible for us to keep neglecting these categories. I am hoping this challenge will help us stop ignoring them because we know that it will become necessary to replace these items at some point - or, if we fail to save appropriately, to live without them! (Talk about impetus to start saving).

REVISED GOALS: We took a closer look at our savings goals and made some revisions. Our revised target savings goals for 2020 are as follows: 

• Annual Medical Deductibles for 2 people: approximately $724.25 per month / $8,691.00 for the year. This encompasses Current Year Deductible for Person A ($2,041.00), Current Year Deductible for Person B ($4,500.00), and Next Year Deductible for Person A (estimating $2,150.00). Ultimately we'd like to have fully funded Annual Medical Deductibles for both the current year and the next year for both people. That way in the event that either/both of us spend the current year's deductible, we would still be able to start the following year with a fully funded deductible. 
• Emergency Fund: $100.00 per month / $1,200.00 for the year.
• Electronics Replacement Fund (Computer, iPad, Kindle, iPhones): $281.43 per month / $3,377.16 for the year. We bumped up our estimates for what the new products may cost.
• Christmas: $76.75 per month / $921.00 for the year. We added another sub-category that we had forgotten.
• Escrow items: (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00 per month / $15,000.00 for the year.

As such, for 2020 our target savings goal = approximately $2,432.43 per month / $29,189.16 for the year.

January check-in (complete): We saved $2,606.64 as outlined below. 

• Annual Medical Deductibles for 2 people = $898.46.
• Emergency Fund = $100.00
• Electronics Replacement Fund: $281.43.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00

Total savings YTD: $2,606.64, which is 8.93% of our total goal.

Below are the remaining target saving goals for these categories:           

• Annual Medical Deductibles for 2 people = $7,792.54 remaining.
• Emergency Fund = $1,100.00 remaining.
• Electronics Replacement Fund: $3,095.73 remaining.
• Christmas: $844.25 remaining.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $13,750 remaining.

February check-in (complete): We saved $8,361.26 as outlined below, thanks to an annual bonus.

• Annual Medical Deductibles for 2 people = $6,653.08. We have fully funded the Current Year Deductible for Person A ($2,041.00) and the Current Year Deductible for Person B ($4,500.00), and we have saved $112.08 towards Next Year Deductible for Person A.
• Emergency Fund = $100.00.
• Electronics Replacement Fund: $281.43.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $10,967.90, which is 37.58% of our total goal!

Below are our savings totals YTD:            

• Annual Medical Deductibles for 2 people = $7,551.54 / $8,691.00 (87% complete)
• Emergency Fund = $200.00 / $1,200.00 (17% complete)
• Electronics Replacement Fund: $562.86 / $3,377.16 (17% complete)
• Christmas: $153.50 / $921.00 (17% complete)
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $2,500.00 / $15,000.00 (17% complete)

Ivory Tiger 

Fantastic progress.  

Ivory Tiger yay! out of curiosity, why $921 for Christmas? Seems so... random, haha

xgirlmama We are a small family with minimal gatherings... yet for all that, we had some unplanned Christmas expenses last year that we are trying to plan for this year to give us room to celebrate if we choose to do something. Note: Gifts are a separate category not listed under Christmas. All other holiday-related categories are below, with the idea that we can WAM across these categories as needed as long as the total doesn't exceed $921.

• $200 for extra groceries needed for the holidays.
• $150 for extra alcoholic drinks for a get-together or to take advantage of holiday specials for drinks.
• $100 for extra holiday decorations and supplies.
• $100 for extra holiday clothing (ugly Christmas sweaters, etc.)
• $100 for holiday fun activities out with friends.
• $55 for 2x tickets to a local holiday event.
• $216 for holiday cards, based on averages spent in past years.

March check-in (complete): We saved $1,820.26 as outlined below.

• Annual Medical Deductibles for 2 people = $112.08.
• Emergency Fund = $100.00.
• Electronics Replacement Fund: $281.43.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $12,788.16, which is 43.81% of our total goal! 

Below are our savings totals YTD:             

• Annual Medical Deductibles for 2 people = $7,570.24 / $8,691.00 (87% complete). It looks like February's calculations may have had a typo but this total is correct for March.
• Emergency Fund = $300.00 / $1,200.00 (25% complete)
• Electronics Replacement Fund: $562.86 / $3,377.16 (25% complete)
• Christmas: $230.25 / $921.00 (25% complete)
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $3,750.00 / $15,000.00 (25% complete)

April check-in (complete): We saved $2,206.76 as outlined below. 

• Annual Medical Deductibles for 2 people = $212.08.
• Emergency Fund = $100.00.
• Electronics Replacement Fund: $567.93.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $14,994.92, which is 51.37% of our total goal!  

Below are our savings totals YTD:              

• Annual Medical Deductibles for 2 people = $7,782.32 / $8,691.00 (90% complete). 
• Emergency Fund = $400.00 / $1,200.00 (33% complete)
• Electronics Replacement Fund: $1,412.22 / $3,377.16 (42% complete)
• Christmas: $307.00 / $921.00 (33% complete)
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $5,000.00 / $15,000.00 (33% complete)

Correction: 

April check-in (complete): We saved $2,244.26 as outlined below.  

• Annual Medical Deductibles for 2 people = $212.08.
• Emergency Fund = $100.00.
• Electronics Replacement Fund: $605.43.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $15,032.42, which is 51.50% of our total goal!   

Below are our savings totals YTD:               

• Annual Medical Deductibles for 2 people = $7,782.32 / $8,691.00 (90% complete). 
• Emergency Fund = $400.00 / $1,200.00 (33% complete)
• Electronics Replacement Fund: $1,449.72 / $3,377.16 (43% complete)
• Christmas: $307.00 / $921.00 (33% complete)
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $5,000.00 / $15,000.00 (33% complete)

May check-in (complete): We saved $2,159.69 as outlined below.   

• Annual Medical Deductibles for 2 people = $212.08.
• Emergency Fund = $100.00.
• Electronics Replacement Fund: $520.86.
• Christmas: $76.75.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $17,192.11, which is 58.90% of our total goal!    

Below are our savings totals YTD:                

• Annual Medical Deductibles for 2 people = $7,994.40 / $8,691.00 (92% complete). 
• Emergency Fund = $500.00 / $1,200.00 (42% complete).
• Electronics Replacement Fund: $1,970.58 / $3,377.16 (58% complete). 
• Christmas: $383.74 / $921.00 (42% complete).
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $6,250.00 / $15,000.00 (42% complete).

June check-in (complete): We saved $4,103.43 as outlined below. We were able to top off some categories using tax refunds, and will freeze some categories due to a change in priorities. Unfortunately we are down one job due to COVID-19. 

• Annual Medical Deductibles for 2 people = $212.08.
• Emergency Fund = $1,100.00. Added $1,000 from tax refund on top of our regular monthly contribution of $100.
• Electronics Replacement Fund: $1,541.35. 
• Christmas: $66.78 which is lower than our regular contribution due to a change in priorities.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $21,295.54, which is 72.96% of our total goal.

Below are our savings totals YTD:                 

• Annual Medical Deductibles for 2 people = $8,206.48 / $8,691.00 (94% complete). Moving forward we will not be able to proactively save towards our 2020 annual medical deductibles unless we can get another job, so this savings category will be frozen at this amount. 
• Emergency Fund = $1,600.00 / $1,200.00 (133% complete). Although our initial goal is complete, we plan to continue contributing $100 per month as this is a high priority savings category for us.
• Electronics Replacement Fund: $3,511.93 / $3,377.16 (104% complete based on newly revised goal). We are considering this savings goal complete for 2020.
• Christmas: $450.52 / $921.00 (49% complete). Moving forward we will not be saving for Christmas unless we can get another job, so this savings category will be frozen.
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $7,500.00 / $15,000.00 (50% complete).

Below are our revised savings goals for the remainder of 2020:

• Emergency Fund: $100.00 per month / $2,200.00 for the year. (73% complete)
• Escrow items: (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00 per month / $15,000.00 for the year. (50% complete)

July check-in (complete): We saved $1,350.00 as outlined below.  Unfortunately we are down one job due to COVID-19.  

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $22,618.93, which is 77.49% of our total goal. 

Below are our savings totals YTD:                  

• Emergency Fund = $1,700.00 / $2,200.00 (77% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $8,750.00 / $15,000.00 (58% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

August check-in (complete): We saved $1,350.00 as outlined below.  Still at one income only.

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $23,968.93, which is 82.12% of our total goal.  

Below are our savings totals YTD:                   

• Emergency Fund = $1,800.00 / $2,200.00 (82% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $10,000.00 / $15,000.00 (67% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

September check-in (complete): We saved $1,350.00 as outlined below.  Still at one income only. 

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $25,318.93 which is 86.74% of our total goal.   

Below are our savings totals YTD:                    

• Emergency Fund = $1,900.00 / $2,200.00 (86% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $11,250.00 / $15,000.00 (75% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

October check-in (complete): We saved $1,350.00 as outlined below.  

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $26,668.93 which is 91.37% of our total goal.    

Below are our savings totals YTD:                     

• Emergency Fund = $2,000.00 / $2,200.00 (91% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $12,500.00 / $15,000.00 (83% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

November check-in (complete): We saved $1,350.00 as outlined below.   

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $28,018.93 which is 96% of our total goal.     

Below are our savings totals YTD:                      

• Emergency Fund = $2,100.00 / $2,200.00 (91% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $13,750.00 / $15,000.00 (92% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

Ivory Tiger  Congratulations!! Even being down to one income, you've been able to maintain great progress towards your goals! Very inspiring :)

December check-in (complete): We saved $1,350.00 as outlined below.    

• Emergency Fund = $100.00. 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $1,250.00.

Total savings YTD: $29,368.93 which is 100.62% of our total goal.  WOOHOO!

Below are our savings totals for 2020:                       

• Emergency Fund = $2,200.00 / $2,200.00 (100% complete). 
• Escrow items (2x Car Insurances, Homeowners Insurance, Earthquake Insurance, Property Taxes): $15,000.00 / $15,000.00 (100% complete).
• CATEGORY FROZEN: Annual Medical Deductibles for 2 people = $8,206.48. 
• CATEGORY FROZEN: Electronics Replacement Fund: $3,511.93. 
• CATEGORY FROZEN: Christmas: $450.52.

This was our first year participating in the savings challenge and I found it very helpful to help us keep focused on our goals, especially with the pandemic-related challenges that came our way. 

Slate Blue Violin Congratulations on paying off your debt and welcome to the savings challenge. It feels so great to put $ every month toward your future self vs. paying for your past self.

Keep Calm and Save Money I love that you're saving and paying for grad school as you go! My student loans make me envious of this approach, but the less student loans out there the better I feel. :)

thebookishknitter These are great goals and I know future you will thank you! ;)

Stacy C Hubby got a Christmas bonus from work yesterday. Most went to his daily credit card that crept up there...Paid in full but still gets used. BUT..... I made my goal of the insurance deductible!!! There is $250 sitting there for any crashes...knock on wood. And my car maintenance is now at $125.....Progress is progress!

GSDdad 

Ah, realistic pacing, the true sign of YNAB maturity.  😄  You got this!

Krys I love that you're tackling both savings and debt at the same time! We suggest having enough in savings that, should something happen, you don't have to go back into debt to deal with it. Hopefully, you won't need to touch any of those emergency funds! :)

Faness The good news is I'm fully funding all of my True Expenses (or "sinking funds"), so the emergency fund is really just for the stranger emergencies, and since we had so many of those this year, I'm hoping we are covered for at least a few more months!

Krys I neglected to update the thread when updating the spreadsheet. Between January and February, I have saved $309.81. I'm about 31% of the way to my stretch goal of $1,000 in 2020!

As of today, March 31, I have saved $359.82, and am 36% of the way to my goal.

As of April 30, I have $410.12 saved, and am 41% of the way to my goal!

As of May 31, I have $485.28 saved, and am 49% of the way to my goal!

As of August 31, I have saved $686.04, and am 69% of the way to my goal!

Krys As of September 30, I have saved $25. I needed to use the emergency savings to cover out-of-pocket medical expenses. Glad they were there! Now, we start saving all over again!

As of October 30, I have saved $906.58, and am 91% of the way to my goal!

Last month, I used the savings to cover some medical expenses, and this month, I got reimbursed for those plus a rebate from something else allowed me to contribute extra back. So it looks like I'll reach the full $1,000 this year after all!

As of November 30, I have reached my goal, with a savings total of $1,010.57! With that, I will stop sending contributions to my emergency fund.

Krys Woooooo! Congratulations!! 🎉

internettie Building onto your emergency fund is a great goal for this challenge! Yay for added security, extra buffering and more funds! :)

Faness thanks! 

Update: have now bought the house so can refocus on my saving goals. Having to pay for house maintenance fees already so I'm putting a lot into that now (plus more than usual in emergency fund!). Also will be getting a payrise so I'll factor that into my mortgage overpayment goal.

curl_84 Congratulations on becoming a homeowner! It brings its own set of fees and expenses, but they've been more than worth it in our experience. I hope you're enjoying your new place! :)

Faness Thank you, I definitely am! :)

Veronica yes!!!  It’s mostly really cool. Sometimes I just want my house to myself though, so honestly the break has been a nice thing for me for awhile, but I’m really missing the extra income to help with my goals. 

Veronica Summer is really busy for my location and winter is a lot less busy.  If you do it, use Beyond Pricing to set your prices algorithmically.  They use similar algorithms to those used by hotels to get you the max income by increasing the nightly rental fees for special events or when the demand is just high in general.

Hi, Juggler 

Welcome back.

flyonthewall Welcome (back)! I found that getting that 1st 1,000 really helped prevent adding more cc debt and I felt so much calmer as I focused on paying down my debt. You got this!

bookyarncafe  Thanks for the reply. I'm upping it to €1,200. €100 a month is possible i reckon 🤞

just_zoshin I had the same problem with autosave via my bank. Too easy to move between accounts when my checking account got low near the end of each month. This year I am depositing in an online savings account (not where I have my checking) and it feels much easier to not touch it. It's so weird that both are online, but one "feels" further away.

bookyarncafe This gives me that "out of sight, out of mind" feeling, even if the out of sight is only one website away. ;)

bookyarncafe That's awesome! And I hear you. I have 2 a separate savings and checking with Capital One. Every paycheck half my rent, plus some extra, goes there so I don't commingle funds.