Reply #15: We do a budget every month.

[AirmensMom]

Have done it for over 30 years. I agree with you on that. We always pay off our credit card at the end of the month -- it's used more for convenience than anything else. However, not everyone does a budget. If you're not watching where the money is going, it's easier to spend a few dollars on stupid things than to put those few dollars to work for you.

The bottom line is that if you don't save the money yourself, for whatever reason, you might as well have it withheld and get a refund at the end of the year instead of risking having to pay with money that's not there. We haven't had a refund in several years -- but figuring out how much to have withheld so you don't end up paying a penalty can be pretty tricky.

We used to have a forced savings account for property taxes and homeowner's insurance when we lived in FL and the bills were enormous. The credit union transferred money every month and we would have to pay a penalty if we withdrew from that account more than once per year. Worked great! We don't need that now because our property tax is very low and our insurance company lets us pay monthly.