Budgeting
It takes a bit of planning and some extra bookkeeping to make sure that money is there when a big bill -such as property taxes - comes in. In writing your budget, you provide the items by creating an artificial monthly amount. That's fine, but that money can give a false sense of well-being in the budget as it accumulates. Also, there's a strong temptation to fudge on those accounts if it isn't quickly obvious that you're running behind. On the other hand, the funds may build up to an amount that really should be working for you by earning interest. Finally, there is a question of timing: in the first year, you need to make sure that you've built up money fast enough to meet the bills that arrive early in the year.
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