Skip to main content

An Alternative to Escrow

I wrote the other day about if you should or shouldn't escrow. If you choose not to, here's a method my wife and I have been using for a few years to help ensure those annual or semi-annual bills don't break the bank...or ruin Christmas.

1. Calculate your annual or irregular expenses - house tax & insurance, car tax & insurance, life insurance, etc.
House Tax = $900
House Ins = $720
Car Tax = $300
Car Ins = $900
Life Ins = $1,000
Total = $3,820

2. Divide that total by 12 = $320 (rounded). I also like to keep this on a spreadsheet so I can update it every year or so.

3. Set up a separate interest bearing savings account for your "escrow." Note: this should NOT be the same as your regular savings account since this money is already allocated for a special purpose. Plus, instead of the bank earning interest of your money, you do!

4. Now comes the hard part, being disciplined enough to put that amount into the escrow savings account each month/pay period.

Hope this is helpful with your family's budgeting this summer.
Labels:

Comments

Post a Comment

Popular posts from this blog

2020 is Hindsight...Finally!

Wow, what a year! 2020 could literally be an entire decade, maybe more, of history, change, and lessons rolled up into these twelve months. While many aspects of 2020 were kind of sucky and we would like to forget them, it will certainly be a year to remember. And it will be enlightening when this year is looked back on in 10, 25, or 50 years to be discussed. I wonder if we'll seem like geniuses or idiots? Probably both to some extent! While there is so much that I could consider and analyze about this year, I'll try to break some of it down into four dimensions - Physical, Spiritual, Mental, and Social/Emotional. These are events and happenings from my world and perspective and I'm trying to be open in sharing and would love to hear from others on events you found most transforming. Physical When COVID cause gyms to close, that messed me up. Our town and state were late to be hit with severe cases and therefore later than many across the country to close up shop. I'm n...
Post a Comment
Read more

Worship > Fellowship

I believe that worship, true worship of God, is more important than fellowship with other believers.  Now I'm not saying that fellowship and relationships aren't important.  But I am saying that if I'm not worshiping God, if I'm not right with him, then my other relationships can't be right.  My fellowship and worship with him is more important than my relationship with my wife, my son, family, friends, my church, and my community.  Think about it.  How can I love my wife like Christ loved the church if I don't love Christ?  I wouldn't know how to love without knowing him.  Why should she submit to me if I'm not worth submitting to?  And yes I do believes wives should submit, but I also believe that won't be an issue as long as she's submitting to a godly husband.  (Ephesians 5:22-25) Our love for others must flow from our love and worship of God.  1 John 4:19-21 reads, "We love because he first loved us.  If anyone says,...
Post a Comment
Read more

Magnify

"Oh, magnify the Lord with me, and let us exalt his name together!" - Psalm 34:3 We often talk or sing about magnifying the Lord or magnifying his name, but what does it really mean to magnify something?  According to Webster, the simple  definition of magnify is: - to make something greater - to make something seem greater or more important than it is - to make something appear larger I've spent practically all of my life in church, but not necessarily walking with God.  I didn't pray about where I would attend college, get a job, or buy a house.  I took the lower cost college and searched for best available in the other two categories.  I have since learned that if I will focus on God, he will direct me to where I should be and what I should be doing.  It's like looking through a magnifying glass.  You can be glancing around and going in many different directions, but then the Lord steadies your hand and you begin to see the image under t...
Post a Comment
Read more