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

The Power of Our Tongue

"How great a forest is set ablaze by such a small fire!  And the tongue is a fire, a world of unrighteousness.  The tongue is set among our members, staining the whole body, setting on fire the entire course of life, and set on fire by hell." - James 3:6 When we think of fire, we may think of a small campfire to roast marshmallows, a wood stove fire that is contained, or possibly a raging inferno that is destroying a building or forest.  James here is comparing our tongue to a fire.  The sinful words that come out of our mouths have the power to destroy everything they touch, and like a fire can do so rapidly or slowly, but with dramatic effect either way.  We should also be mindful of our speech because even if it's not directly what we say, the permeating "smoke" from our speech can destroy the things around us as well.  Often times even when we are filled with good and honorable actions, our tongue can stain, or contaminate, our body throug...
Post a Comment
Read more