Do you find it difficult to save money? Do you need some help trying to figure out how to make saving more of a priority in your life? Sinking funds are the answer!
My husband and I have been using sinking funds for the past 2 years and it allows us to prepare for upcoming life events and feel at peace. We do not worry about how to afford things like moving, christmas, new cars, etc.
Here is how they work:
- Come up with a list of things you are trying to save for
- Decide how much money you need to save to reach your goal
- Pick a date that you want all the money saved up by
- Divide the amount of money you want to save by the number of weeks or months until your chosen date
- Save that amount of money every week/month and when the time comes that you need that money, you will have it all saved!
- Make sure you work these sinking funds into your budget at the start of every month, do not leave it until after you have blindly spent a bunch of money all month. MAKE IT A PRIORITY!
Here are some ideas for sinking funds that my husband and I have, have had, or plan to have in the future:
- Car Repair
- Amazon Prime
- Kids Parties
- Home Repairs