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about spending categories

When I was watching pennies carefully, I set up direct deposit of the paycheck to a savings account (at the Credit Union). That's the money I used for large, infrequent bills = insurance,property tax = and for travel.
The remainder of the paycheck went to the checking account (at a bank) for everyday expenses.
I could get to the saved money when I needed it, but it was an errand to go get it, which encouraged me to live from the checking account.
And it helped when we thought about travel, because the account was a total separate from what we lived on.

If you find yourself spending less than you allocated, some folks recommend taking a bit of the savings as a reward.
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