For my system, I use an ING account. With ING, you can set up sub-accounts under your main account log-in and name them anything you want. You can also set up auto contributions/deductions for each account so they take different amounts at different times. So, when I log into ING I can see at a glance how much I’ve saved towards each goal. I think this is easier than tracking on an excel spreadsheet because, after the initial set-up, I never have to do anything again if I don’t want to while with Excel I have to continually make updates. But as with everything about personal finance, it’s all about what works for you. Read, learn and then apply what fits and disregard what doesn’t.

2) Heck, how many people do you think even finish step 1? Recent statistics suggest not too many. My focus is just to fund them all to the max…period. If I can just accomplish that, then I’ll worry about the order. Also, I think the amount to go into your 401(k) really depends on your tax situation as well (how much benefit do you want now vs. later (by investing in a Roth).

3) There is something to be said about ease of use, but I think there is a point where you are cheating yourself out of some money unneccessarily. For example, I won’t get into an online account that won’t let me write paper checks. I don’t write them often, but when I need to, I want to be able to do so. I might think differently if the margin was that much better (ex: a full percentage point), but it’s not - they are comparable options. I would encourage you to consider GE Interest Plus http://geinterestplus.com/interestplus/ - great yields and a lot of flexibility including ACH transfer to your main bank account.

I’m kind of in the same boat as you: no extra money for a car, although I’m still making the payments, fund my 401(k) and put what I can into a Roth, and have an emergency/large purchase fund that I have easy (but not too easy) access to. That works for me, so I don’t need to change.

For me there’s an added psychological benefit. It’s hard for me to spend money from our savings account (because it’s savings!), while it’s easy to spend money that’s specifically earmarked for a certain purpose. By lumping all the money together, I’m less likely to spend it (it’s more fun watching the lump grow, then it is to watch it shrink).

I don’t understand the appeal of the high-yield savings accounts. I guess they are FDIC insured, which is great and all. But I keep my money in a MMA as well (Vanguard). My rate usually beats the high-yield rates, and there are no gimmicks involved. Besides, it keeps all my funds together in one place where I can easily shift excess cash into the world’s best index funds.

I guess some people enjoy the “thrill of the chase”, hunting down the best interest rate.