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Sinking Funds

February 15th, 2018 at 02:25 am

This is one thing that I don't have, but I know I'll need to set it up ASAP. I know a few of you have sinking funds. How do you keep track? Are they in a separate savings account? Right now I think I'll need one for school/nursery and clothes for the kids. Us too, possibly. I know this'll help my budget in the long run if I can get this set up.

5 Responses to “Sinking Funds”

  1. creditcardfree Says:

    I currently hold our sinking funds in our checking account and I track them in YNAB. I have in the past put the sinking funds in a separate account, but because they were also combined with our emergency fund I tracked the sinking fund balances in a spreadsheet. So mentally, I could look at the account balance compare to balance of sinking funds and know the difference was our emergency fund money.

    I think way, way back I may have used pen and paper to keep track of the sinking fund balances.

  2. snafu Says:

    I hope you'll begin contributing to a 'sinking fund', in addition to an Emergency Fund. It's similar to the familiar Christmas Fund, to help anticipate spending. I go back over 'intermittent' spending items of the previous year and list those costs on a piece of paper. School clothes/school supplies, birthday party, Mother's day,Halloween, Annual Insurance for example. Whatever the cost/anticipated cost, is divided by pays so when the expenditure occurred, the money was waiting. How many paydays today through fall school start? Do you start a new semester in January? Do DKs have school events/sports/trips that will need extra funding?

    I transfer sums each pay to cover costs, it's manageable in small segments. There are always surprises that I had to learn to say 'no' this year, will add it to the next year and choose to drop something as it's impossible to fund everything! I wish I could mimic Frugalwoods more effectively

  3. scottish girl Says:

    Thanks. I definitely want to set it up. I know I'll have to adjust my budget to do it, but it'll be worth it.
    I'm expecting there to be school trips soon. I think there's seven pays until they start the new school year in August.

  4. rob62521 Says:

    We actually have different accounts: Christmas Club, Vacation, and then a regular savings we call our home improvement. Our credit union lets us have different accounts. Sadly, the Christmas Club pays very little interest. But it isn't huge either.

  5. FrugalTexan75 Says:

    I have all my money in two checking accounts (to take advantage of interest), but track what the money is for in YNAB.

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