I get the logic behind splitting up funds, but honestly, I just can’t keep that many buckets straight in my head. Maybe it’s laziness, but one big emergency fund feels simpler for me. If my car and my teeth both fall apart in the same month, yeah, it’s a rough hit, but at least I know the total amount I’ve got to work with.
One time my car needed a new transmission right after my cat swallowed a string and needed surgery (don’t ask how much that cost). If I’d only had a “car” fund or a “pet” fund, I would’ve been scrambling to move money around anyway. I guess I’d rather have one pile and just accept that some years are going to be brutal.
Not saying the separate pots thing is wrong—it probably works for a lot of people. I just find the fewer mental tabs I have open, the less stressed I get. Maybe it’s all about how much you like tracking stuff...
I totally get where you’re coming from. I tried the “bucket” method for a while, but honestly, it just made me anxious trying to remember which fund was for what. These days, I keep one big stash and just deal with whatever comes up—like when my Jag needed new brakes the same week my dog ate half a sock (don’t ask). It’s not perfect, but at least I know what I’ve got to work with. Sometimes simple is just less stressful.
I get why lumping everything together feels simpler, but when it comes to insurance deductibles, I’m a big believer in being strategic. Sure, a higher deductible can shave a decent chunk off your monthly bill, but you’ve got to be brutally honest with yourself about risk. That “deal with it as it comes” approach works for day-to-day stuff—like surprise dog sock surgeries—but car repairs or accident claims can hit way harder. If you haven’t already set aside enough to cover that higher deductible, you could be in for a nasty surprise.
I used to think I was saving money by bumping up my deductible, but after a minor fender bender last winter (black ice is no joke), I realized how quickly those savings disappear if you’re not ready for the out-of-pocket cost. Ended up dipping into my emergency fund and then some. Honestly, the stress wasn’t worth the $20 or $30 I was saving each month.
For me, peace of mind is worth more than those short-term savings. I keep my deductible at a level where I know I can cover it without scrambling or pulling from other priorities. If you’re disciplined about stashing away the difference (like actually putting that saved premium into a separate account), then maybe it’s worth considering. Otherwise, it feels like playing with fire.
Not saying your system doesn’t work—it clearly does for you—but when it comes to insurance, I’d rather overprepare than get caught off guard. Too many variables out there... especially when unpredictable stuff happens, like pets with questionable taste in socks or sudden brake jobs on a Jag.
