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I handle my savings somewhat differently. My "freedom" account is not a set percentage but a set amount. For instance, I have figured out the catagories that I need for the irregular payments, such as $100 a month for the cars (tabs, maintenance, tires, brakes, etc.), $100 a month for the kids (sports, book club at school, PTA fees, camps, etc.), $50 a month for charity, $50 a month for gifts (christmas and birthdays), $75 a month for vacation, etc.

I know that I will have these expenses no matter what, so the percentage doesn't matter. I consider my freedom account payment to my second checking account (free with free checks at a credit union) to be an expense like paying the mortgage.

The other savings (efund and retirement) are then distributed in order of funding the efund then the retirement. Once we had 6-12 months of living expenses in the bank, we quit saving in the efund and put the rest into retirement (401K, IRA, etc.).

HTH,

L

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