Once you are out of the debt mindset and into the cash mindset you will have to start saving up for larger purchases.  

I think that's a big misconception about no longer having debt.  Those in the debt mindset think that in order to pay cash for something you have to "cash flow" it.  Meaning, pay for it all in one shot during the month with no real planning.  So in their mind, someone who wants to buy a car with cash would have to just happen to have $15,000+ sitting in their checking account.  

They think "It's impossible to buy a car with cash!"

That's not how it really works.  You still make payments, you just make the payments to yourself, and you do it before you buy the item. For example, I don't have a car loan but I'm still making car payments.  Huh?  I'm making payments to myself for my future car.  I've been making payments to myself for about three years.  In two more years I'll be able to afford pretty much any car I want to buy, within reason.  Certainly any car I could afford to finance. 

This brings to me to my love of having lots of different savings accounts.  

When you first get started you will probably only have one savings account.  A place to put your emergency fund.  But as you move along, paying off debt and saving more you will want to start saving for large purchases rather than just saving for the sake of saving.

In my house we have several savings accounts.  We have the car fund that I mentioned, a vacation fund, a house fund, an emergency fund, and then what we call the "regular savings" that used to be our cushion fund but doesn't really have a purpose at the moment since our income has stabilized.

It works like the envelope system but on a grander scale.  

When you have all your money in one lump sum it's hard to really remember what you are saving for.  Sometimes it even feels like it doesn't matter if you spend a little.  It's easy to rationalize that purchase.  But when your money is broken up into accounts with names each with a job to do it makes you realize what you are giving up when you make a larger unexpected purchase.  

When I want to dip into savings to replace my ugly couch I have to choose which savings account I want to take it out of.  Should I take it from the emergency fund?  It's not really an emergency.  Am I willing to give up this year's vacation for a new couch?  No.  How about the house fund?  Am I willing to pay off my house a little slower than planned?  Maybe, it depends on how ugly that couch is!

Use your savings accounts just like you use your budget.  

Give each dollar a job.  Some of the dollars will have the job of keeping you safe.  That's your emergency fund.  But other dollars will have different jobs.  Like a new car or a vacation.   This will give you more control over your spending and keep more money in the bank!

Ashley Barnett, Personal Finance Blogger guest blogger for leading provider of debt relief, careone services, inc.Ashley Barnett

As a budget coach and financial author Ashley Barnett spends her days (and nights!) giving everyday families the tools they need to succeed with their money.  Her passion for budgeting is fueled by watching people get control of their money and turn their financial lives around.  Check out more resources and advice on Ashley's blog, Money Talks Coaching.