Comments on: Should you keep a cushion in your checking account?

By: Using ING as our primary bank — Living Well on Less

Using ING as our primary bank — Living Well on Less — Wed, 30 Sep 2009 17:17:18 +0000

[…] I wrote about our money management dilemma: when we keep extra money in our checking account, we’re more likely to overspend, but […]

By: FrugalChick

FrugalChick — Wed, 30 Sep 2009 12:39:24 +0000

I find I end up in the same overspending boat if I leave a cushion in the checking account. So I usually move everything to savings to protect it. BUT that can make spontaneity difficult to achieve, like if a birthday dinner comes up and you need to transfer a few bucks over. On the other hand, having no money in your checking account will sure keep those nasty little impulse buys at bay. .-= FrugalChick´s last blog ..Beauty =-.

By: Sharon

Sharon — Wed, 30 Sep 2009 12:20:43 +0000

Actually I trick myself into saving for a cushion in my checking account. I don't count the coins...for instance if I have a check amount of $4.07, I subtract $5.00 from the balance. Because I have online banking, it's easy to balance the account. Right now, I have $120.00 in "change" that is not reflected in my balance, thus a cushion. I know it's there, but I don't spend it. .-= Sharon´s last blog ..Not Buying It =-.

By: Mrs. Money

Mrs. Money — Tue, 29 Sep 2009 15:27:25 +0000

We have a line of credit attached to our checking account (it doesn't show up on our credit report) in case of overdrafts. We've never used it but it's there for peace of mind. Like you, if I have money, I'm more likely to spend. BUT when I get towards payday and I have like $200 I kinda freak out. I have what's called a "secret" account that I keep some money in as a slush fund/mortgage acct. I think you've got a great idea though. .-= Mrs. Money´s last blog ..Stroll Through my Garden =-.

By: eastTXmom

eastTXmom — Tue, 29 Sep 2009 14:16:03 +0000

Your post brings back memories of my mom “cushioning” her check account. I didn’t learn of this until I was much older and would give my mom a hard time about how she would always tell me “we don’t have enough money to cover that.” I can look back now and smile at my mom’s frugal ways and how they’ve rubbed off on me. I keep an extra $100 in our checking account, but I don’t look at it as a cushion as much as ‘things happen’.

Just remind yourself you’re learning what works best for you and your hubby and mistakes are permitted.

Take care.

By: Kacie

Kacie — Tue, 29 Sep 2009 13:46:10 +0000

I think your cushion, if you have one, needs to be much smaller than $1,000. The $100 or $200 sounds good. The $1,000 was there to avoid a what, $30 overdraft? We don't have a cushion, but once we get fully migrated to our new bank, we'll have a little protection. If we overdraw our checking, the bank will automatically tap our linked savings accounts for no fee. It'll help us avoid overdraft fees, but it'll also (hopefully) force us to pay close attention to our spending, especially as the account balance dips. .-= Kacie´s last blog ..G-20 a big deal for Pittsburgh =-.