10.13.2017

What are Sinking Funds and how can they Help Your Budget?

This post contains affiliate links. When you make a purchase using an affiliate link I am compensated in order to keep this site running. Thank you!

What are sinking funds?

Sinking or Slush funds are savings for specific items that you keep adding to. The account may or may not go away once you reach the goal. Here is an example:
Sinking Fund: Car Maintenance 
$50.00 per month
The money accrues every month until a repair is needed. 

Sinking funds are very beneficial to budgets because you are “stashing away” money for a future expense. This means when an $800.00 car repair comes up you may only need to come up half. The ultimate goal is to avoid using credit cards by being prepared.

Sinking funds are meant to be SPECIFIC so you should have one for each area you want to sink money. Like car and home repairs, co-pays, vacations, Christmas, Birthdays, Insurances, babysitting, and entertainment. The list can go on forever honestly.

You can keep sinking funds in a separate account at the bank or in cash envelopes at the bank. You can keep all your sinking funds in one savings account but I advise against that because you have to be a very detailed record keeper if you are going to go this route. Please confirm with your bank that there are no minimum amounts to be kept in a savings account. You do not want to incur fees for savings money!

We use these plastic envelopes for our sinking funds because they are much more durable than the paper ones.

Sinking funds can also be a great way to save for larger items like college courses and home down payments.  They give you visual evidence that you are getting closer and closer to reaching your goal.

Do you use sinking funds? Do you have any questions about how to set them? Let me know and I will be happy to answer them.

Not sure how you can afford to start sinking funds? Family money coaching may be a great option for you, learn what is involved and how to book a free consultation today.

WATCH THE FULL VIDEO ON SINKING FUNDS HERE: 














You may also like:



10.05.2017

Creating a Home of Order

This post contains affiliate links. When you make a purchase using an affiliate link I am compensated in order to keep this site running. Thank you!


9.23.2017

6 Tips to Refresh your Budget

This post contains affiliate links. When you make a purchase using an affiliate link I am compensated in order to keep this site running. Thank you!

6 ways to refresh your budget

9.14.2017

Creating a Wise Christmas Budget

This post contains affiliate links. When you make a purchase using an affiliate link I am compensated in order to keep this site running. Thank you!
Creating a Christmas budget

Christmas is a retailers dream, the credit cards companies bread and butter, and nightmare for families just making it. The extra expense of the holiday combined with time off and the pressure to meet status quo can be debilitating to families across the nation.  Today I want to share with you how to create a wise Christmas Budget but first a few stats.

9.08.2017

Meal Planning for a Whole Month

This post contains affiliate links. When you make a purchase using an affiliate link I am compensated in order to keep this site running. Thank you!

Monthly meal planning is not something that comes easily to many busy families; in fact, MEAL PLANNING does not happen in most homes. This post will teach all you need to know so you can conquer meal planning once and for all.
Conquer Meal Planning Once and For All with Monthly Meal Planning