I know it's called a "sinking fund," but I prefer to call them "floating funds." I save so much money by paying for things in full rather than monthly (ie auto insurance), and putting the money aside little by little keeps my overall budget afloat! And it has helped me almost fully fund a 6 month emergency fund (you know, for things like falling trees!)
Larry, don't feel so bad about your jacket from 1978. I STILL have my Mother's 100% Irish Wool coat that my mother came to this country in back in 1948!! And it's STILL in perfect condition!
Our sinking funds... Christmas, insurance, property taxes, propane, gun range, AAA, car maintenance, car replacement (it is fully funded and just waiting in the bank until we need to use it), car tags... We also have two more... My cousin passed away 12 years ago and each year we have a benefit in his honor and the money raised goes to scholarships for local high school students who attend Ranken Tech school... Hubby and I pay for the band each year and we buy our tshirts/hoodies every year for us, our daughters, son in-law, and grandson...
I have been using cash enveloppes for current spending for years. Every payday I pay off my credit card and then allocate funds in enveloppes. I now have to work on not taking funds from one enveloppe for a different purpose! Sometimes the car maintenance fund has to loan money to the grocery fund at the end of the pay period. Already got rid of cable TV. Netflix is the next on the chopping block - it eats up my leisure time!
I'm with Larry on the topic of clothing. I have owned most of my clothing for decades. The vast majority of the items that are less than a decade old are either gifts, hand me downs, thrift store purchases or purchased from Walmart $3 clearance sales. I rarely spent more than $25 a year on clothing and normally spend much less than that.
I’m thinking another way to save on clothing might be to try to keep in a consistent size. I’ve had periods in my life when I put on weight and had nice clothes that didn’t fit and had to buy bigger sizes. But I found walking which really helped and even better free.
@@elizabethnicholas1939 That is a good option for those who are not in wheelchairs (my Partner and I are both disabled). I used to love to go on long walks when that was an option for me. In fact, back in the 1990s, I used to even go hiking and camping. I miss those days.
I do it differently. I have 2 sinking funds-one long term and one short term. The short term one is for things that I need to pay this year:car insurance, car registration, gifts, car repairs, dental work, vision care, etc. The long term one is for things that that are long term items that I know I will need to replace but that will last more than a year: tires, sofa, major appliances, etc. That way I can put aside a small amount of money each month to build a fund for those items when the time has come to replace them. I have each of these at a separate financial institution.
Two categories I added this year was graduation and wedding. My niece is graduating college and getting married. I need money for gifts and clothing for events and it's the best way for me to save.
Sinking funds have changed my finances for the good. I have been debt free but on a smaller income for several years & the sinking funds help me plan. I “sharpen” my calculations every year. Some categories I include: yearly professional fees for certifications; medical deductible expenses; yearly subscription such as computer anti-virus; tax preparation expenses; car license renewals, repairs-maintenance. Great video on this topic! Wish I had known about this years ago!
Wish we had understood sinking funds four years ago when we were expecting a baby - it's not like we didn't know he was coming! Thankfully we've learned a LOT since then. The thing I have come to love about sinking funds is now is I never have to feel guilty for spending money on expenses I planned for and already have money designated for. It's so simple, but a total game-changer!
We had a “we will deal with that when it comes” attitude for far too long. All it brought was unnecessary stress. Now that we have sinking funds life is so much calmer .
I’m expecting my first baby, and we started a sinking fund. It’s going to make shopping for the baby so much more fun. I can wait and am so thankful we’re able to financially prepare.
Glasses - my husband and I both need glasses this year, and we usually get both regular glasses and sunglasses. Carpet - replacing carpet for four bedrooms. Vacation - we don't have a destination yet, but we still put money aside. Birthdays - for kids and grandkids. It is working for us so far.
@@anonymouslyfrugal858 It is my own challenge- I’m just trying to save any $5 bills that I come across. Hopefully I’ll have at least $100 to just use how I want. I’m really concentrating on the Christmas and office fund.
I'm doing my sinking funds by the snowball method. I find it more effective to focus on, and fund, one category at a time rather than putting small amounts in a variety of categories. Ideally all categories would be funded by December 31 for the upcoming year. We pay our property taxes monthly, which eliminates that category of sinking fund. Last autumn I pre-paid our annual house insurance in full, so now that's a sinking fund. I'm thinking of going back to monthly billing as the new insurance company does not charge a premium for monthly payments. I spent a few hours online/phone and ended up saving 100$/month. Up until then I had just kept accepting what the original insurance company offered each year.
oh my goodness I just heard a while ago, I think it was Ontario mentioning they are thinking of doing a rain water tax...and I laughed at the idea....we they must have got the idea from USA......thanks so much for this info...you are always so nicely detailed, so easy to follow...
Great video! I have several sinking funds including car repair, car insurance, renter's insurance, car tags, and new bed. I need to add new phone and gifts after watching the video and reading the comments.
I always have my sinking funds savings. They are for: property tax, Xmas presents, kids' birthdays, summer holiday, car maintenance, annual gym membership. I'm good at it 😂
I do a bit of sinking funds, but not for all areas. I do for my property taxes, and also for my water, sewer, and sanitation, which is billed quarterly. After listening to this, I understand it better, and now I may be able actually start.
I only have a sinking fund for big items like my taxes and insurance. I live so cheaply that I don't need to focus so much on the little things. I did however call my car insurance company and asked for a reduction because I drive so little. They dropped my bill by $120 a year. It never hurts to ask!
I use a credit union & I can have unlimited savings accounts & each one has a separate line item on my budget & they are labeled for what it’s for. Thank you for this info, I am revamping my budget due to some big changes in my life.
Great video, Hope and Larry. I like the idea of prioritizing sinking funds and finding ways to reduce them...I have sinking funds for a new car, car maintenance, taxes, travel and a wedding (if I get married). Ally bank is perfect for sinking funds because it allows you to save in different buckets. You can also name the buckets and move money between them.
Another quality video! Emergency funds and sinking funds both play good roles. Planned to save 7+ more years for a car (@ $150/mo sinking fund, had $3K) but driver forced my older car into freeway wall & fled, and had to get a $$$ replacement car ASAP for work using good chunk of emergency fund. Lucky I'm OK now but life does have big and small curveballs at times.
I've watched a number of videos on sinking funds and noticed that provision for cats and dogs is missing. They would be a good addition to anyone looking to add an animal to a household.
It's awesome that vacation is at the top of your list lol :) we love you guys and thank you so much we have 5 kids and working hard on budgeting you guys are a God send!
I live in Minnesota and go to North Dakota for car repairs. I have budget mechanic there. I had both wheel bearings replaced on my explorer for 354 dollars. Most garages would have charged me 650 bucks per side. I need lower ball joints on the explorer which will be 325 dollars at my mechanic.
I was laughing at Jacket from 1978 that Larry still wears. My birthday was May 30, 1978 Larry's Jacket is as old as me. I actually have outfit from when my nephew was 2 here's 30 now. So me and Larry definitely have the same mindset 😂.
Thank you for explaining Sinking Funds.😁 I've heard about it recently and didn't really know what it was and how to apply it. Also thank you for examples for people on low income. It's encouraging that we can have more control of our budget and not feel helpless to the circumstances.
I have sinking funds for prescription medicine, property taxes, home insurance, car insurance, life insurance, vehicle registration, Christmas, cell phone, cat meds, car maintenance, lawn treatment, compassion international, farm bureau membership, glasses, and hair.
Ally bank has up to 10 buckets to categorize money in one account, but I haven’t tried it out. They came out with it after I opened a bunch of accounts :D. Some buckets I have that weren’t listed are new computer, emergency travel (for family), new car, moving, and new phone.
@@HappyLife-wv5ms It depends person to person if it would be considered easy to use, but for me it is easy to use. I would leave it up to each individual to do more research on things like FDIC.
After years of Jack N' the Box getting my order wrong, even hamburgers with no meat before meatless was a thing, with no apologies, the worm turns. There APP that offers rewards points flips its sprockets, it kept giving me upwards of 65 points, renewed each time, each dollar spent=one point & I don't spend that much. I got like five $6.00 sandwiches in a row. Power to the consumer.
I've made a lot of categories for Sinking Funds... Insurance car & house Car Maintenance Glasses Kids activities Date Night Homeschooling Christmas Birthdays/Anniversaries And several others I just started this year and I'm trying to figure out how to get the funds saved as funds are also needed. So I have Insurance coming up and don't have enough in that fund yet.
World love to know tips and tricks on saving money for homeschooling. I have three boys, the oldest is 4 and we are just now looking into preschool curriculum and would love to know ideas to start us off right.
I save up during the year for each sinking fund by putting a fixed amount (1/12 of total expense ) every month on a couple of free savings accounts by autopayment. Every savings account is labelled so its so easy to see what I have for each sinking fund and have it Ready by the time taxes and healthcare will have to be payed. It took me one year of paying and saving up for next year and afther that, it's just a bit of very month and no more worries😅
We got a cost-of-living raise this year, but we decided not to use it in our budget. It goes in to our savings account each month and by the end of the year I'll have enough to buy a refrig. if we our old one dies. If it doesn't die, we will just keep saving the funds for an emergency for replacing old house items when the brake and can't repair them anymore.
Little known fact.installing security cameras around your property inside and out,motion.sensors,even a dash cam can actually lower insurance rates.call to be sure.also,homeowners,call up your insurance provider to get their repair people for home repairs.it will lower your rate.plus,they are lisenced and bonded through the insurance company.double check to be sure
What is a sinking fund? A sinking fund is all of my funds because with inflation my funds are sinking. lol I have worked and scrimped to set aside for non monthly expenses like car expenses, holidays and birthdays, and pet vet expenses. Savings is pretty weak.
In England we pay 'council tax' which is money we all pay per house towards council services such as policing, waste collection, schools etc. I pay £150 a month for a small 2 bed bungalow. The amount is decided on property size. They will lower it for unemployed people etc. Is that similar to your property tax ? We dont have that here.
Great question. Yes, very similar. Except that if you rent, you don't pay the tax - the property owner always pays the tax. The amount we pay is never lowered, except that in some states people over the age of 65 who live in the property as their primary residence can apply for a discount if they are low income.
This is how I work my sinking fund. First I get it if it's urgent. Then I estimate how much it'll cost per year. Divide by 12. Save that amount each month. Ex: shoes. I purchased the shoes I needed then started saving monthly so I can purchase them at once when the year is up. However, clothing:. I set an amount each month. $20. Accumulate each month but purchase if I need something leaving the balance. If I use it up, I can't afford to buy any more. I wait till I have money again. What's your thoughts. Am I doing myself justice?
I initially had just a Christmas sinking fund at my credit union while working my debt-free journey. Then I added the Emergency fund. About 2.5 yrs ago I found an online bank that paid better interest. I switched my savings to the online account. The savings rates have since increased numerous times since about May '22. I was able to have my property taxes removed from escrow after paying on my Conventional mortgage for 2 years. Now I have a sinking fund "Bucket" attached to the online savings account for property taxes/Homeowner's insurance, and a "Bucket" for car insurance. I should probably create a "Christmas bucket" too and switch my Christmas savings from the credit union to the online account. I just don't want to see credit unions eaten up by banks.
Thank you for both Sinking Fund videos!! You did a wonderful job explaining them. My question is about using Everydollar for them. Do you set them up as a "fund"? Also, do you keep your sinking funds in one account and keep track of each fund on a spreadsheet? I tend to see the balance and then not keep good records of how much money is for which sinking fund item. Finally, do you have any tips for dealing with the "I need the money for something else now and when the time comes we'll figure out how to pay that big bill" tendencies? THANK YOU!! Blessings to you.
I would like to pick your brains about something. I just started drawing my social security. I am wanting to replace my 2008 Kia optima eventually ( right now 145,000 miles). It is not feasible right now because my husband still owes for his 2017 pickup for another year and we have business loans on our carpet cleaning van & machine. So for now we’re putting new shocks on the car to make it a more comfortable ride and will drive it until we are able to afford a used Kia. My thinking is, since we’ve been paying our bills with our rental income and my husband’s SS ch without my SS check , should we put most of my check towards saving for the next car?🤔 4:21
I refer to these as my escrow account and includes things like property taxes, insurance, etc. I have a separate savings account for escrow and one for personal uses. I use this term, I guess, because of the years I worked in mortgage banking and know that the monthly mortgage payments include principle, interest, taxes, and insurance (PITI). The taxes and insurance go into an escrow account that the bank uses to pay them when due. Different terms. Same concept.
Would you have water heater, a/c, stuff like that in your home maintenance sinking fund? Those will eventually need to be replaced but don’t know when.
Hey how did you know I’ve been eyeing off that Gucci bag😮. I’m taking that as my sign I probably don’t need an expensive bag because I won’t have any money left to put in it! 🙄🤦🏼♀️
This is all great, really. But where do you get all this money each year to put into your sinking funds budget. My sinking funds ad up to more than 5 thousand dollars. I don't have 5 thousand dollars in January of each year to fill up the bucket. Even if I reduce it down to the bare bones, I don't have 2 thousand dollars each new year. I am currently using it backwards. Putting x amount into my bucket each pay period. Then removing what I need each time one of my expences becomes due. My question: how do I change that around. There is no money left each month for additional savings.
Granted, you probably can't fully fund the accounts when starting out - while still having to use the money. Hope can better address how she started this process. It was easy with the car categories. After a car was paid off we just kept paying that money to the bank toward an account for a later replacement, but at a lesser amount than the old car payment. I'll have Hope elaborate. She's the budgeting genius in the house.
I think 14:00-15:55 of the video addresses one part of this problem. Also, you might not be able to fund all of them this year, but partially funded is better than not funded at all. You’ll need to slowly build them each up with any leftover money/windfalls/tax refund/gift cash/etc until you reach that goal and then keep saving to fund for the next year. I would whittle it down to one or two problem areas that are expected expenses (for example Christmas and car registration) and work on those first. Review your expenses from last month and see if you can spend $20 less in one category and put those savings to start one of your sinking funds. It’s an annoyingly slow process but it works and you can do it. Even if it’s just $20, it’s $20 closer and $20 less to figure out when you need it.
A great place to start is by using the amount you spent last year/time. Also, try to guess how much it will cost by breaking it down into items you will need and/or you can look up how much it would cost you to buy it outright if you were shopping for it today.
You don't mention giving. I'm a tither and I also give offerings from my gross income. This impacts what I'm able to set aside because the returns the Bible promises in Malachi 3:10 are not always financial.. What advice do you have for budgeters who pay tithes and offerings?
We didn't mention it in this video because our tithe is not a sinking fund. We pay our tithe first and budget from the remainder of our money. We also set aside a portion of our budgeted income for additional gifts. When the boys were young we had no additional money for giving. So, we would pray for opportunities to help others and meet needs in ways that did not require money. We wanted the boys to understand that God can use you - even if you don't have a lot of money.
My sinking funds are as follows:' Gifts (including Christmas) Car maintenance Medical Electronics Outings (local with grandkids) Travel Personal (Clothes, haircuts) Yearly expenses
Sinking funds do not make sense to me. My sister wanted new countertops but they were “not in the budget” -yet she has been to Europe twice, and Hawaii twice.
Technology. If you have to get a new phone (fails, breaks, waaaaay too old to function anymore), software, monitors, printers (upkeep or new if necessary). Also gardening can entice you into spending...tools, garden beds, new plants, etc. Too easy to overspend.
Car repairs Next car Car maintenance Car insurance Vet Cat food/litter Medicine Medical co-pays AAA Groceries Garden seeds, tools, etc. Household repairs Household products Vision Dental Office supplies Travel Move Savings Miscellaneous Gifts Telephone Electronics Etc. Plus gasoline Pocket cash Financial/Legal funds. Sometimes, some of these categories get only $1-$3. I used to use %'s of income to fund categories. Once during a period of unemployment, I could only put 25 ¢ or 50 ¢ per category. I still added it. I wear thing things for years and years and years. If clothing gets a hole in it, I find a way to mend it. If it goes out of style, I'll re-style it. I also have shoes repaired...and I wear those for years and years, too. I have historically bought really good shoes...the very best I could. They last a LONG time when well cared for. I used to buy such good shoes that I said I "invested" in them. I only bought a few pairs, because I couldn't afford more. I bought classic styles. I still have them and I still use them. They're extremely well built and extremely comfortable.
I have very strange buckets. Rent, Insurance, cable internet & phone and hydro are kept in chequing account. Groceries and medicine go on a gift cards that I purchase at a discount or gifted and kept in a safe. Gift category is kept in savings account. Vacation/road trip is a $5 cash challenge in which I save all $5 dollar bills in a safe and will put that money onto my credit card before travel. All is kept track in my spending/savings journal.
Groceries on gift cards purchased on discount...smart idea. Where is reliable to buy gift cards on discount? We may have different stores available to us, love the idea.
@@Michelle-bw1xg Safeway 2 or 3 times a year offer is buy $150 worth of gift card and get $10 in airmiles points up to 5 times ($750=$50 free grocery in points= saves about 6.7%. Then on the first Tuesday of the month we also get 10 -15 % off if we spend $50 + and I only shop the sales or items that will give me reward points back. I also use coupons and try to stack them with cash back apps. The reward points can be used to purchase groceries so it can snowball. I also bought Esso gift card for $40 and It gives discounts on gas spending every time and I use it when the reward points are greater. The $40 card is worth $50.
Do you have all the sinking funds being funded while on Baby step2? I am on baby step 2 . I see it as another 1200 a month to toss at my debt. however. I like the idea of having funds in these areas/ Here are my sinking funds A month Medical Christmas Car Fund Mower Maint House Maint House Tax & Ins State Farm 6 Mo Bday/Holidays Clothing Kindle/Books Equals to $1200= each month
Had to go back. Totally distracted by the two slow-motion ladies filling half buckets of water. Some sort of cult? Pioneer cosplay? Enquiring minds need to know.
I know it's called a "sinking fund," but I prefer to call them "floating funds." I save so much money by paying for things in full rather than monthly (ie auto insurance), and putting the money aside little by little keeps my overall budget afloat! And it has helped me almost fully fund a 6 month emergency fund (you know, for things like falling trees!)
It is so nice to see a couple who works together and communicates about their goals.
Larry, don't feel so bad about your jacket from 1978. I STILL have my Mother's 100% Irish Wool coat that my mother came to this country in back in 1948!! And it's STILL in perfect condition!
Hi I have the following sinking funds
1) Health: deductible, quarterly meds/vitamins
2) Car: routine maintenance, insurance and expected events eg tires, brakes
3) Home: Taxes & Insurance
4) Home maintenance: Supplies eg filters
5) Vacation
6) Gifts & Célébrations: Birthday & Christmas gifts, extra for holidays eg Easter, Thanksgiving and Christmas
Nice, Carolyn.
Our sinking funds... Christmas, insurance, property taxes, propane, gun range, AAA, car maintenance, car replacement (it is fully funded and just waiting in the bank until we need to use it), car tags... We also have two more... My cousin passed away 12 years ago and each year we have a benefit in his honor and the money raised goes to scholarships for local high school students who attend Ranken Tech school... Hubby and I pay for the band each year and we buy our tshirts/hoodies every year for us, our daughters, son in-law, and grandson...
My sinking fun includes food for the holidays,things for the home, Christmas,birthdays love offering this one is to bless someone in need
Great minds think a like. I put money aside myself to bless those in need. I look at it as a year round secret Santa program.
Very thoughtful, Ella. Nice.
I have been using cash enveloppes for current spending for years. Every payday I pay off my credit card and then allocate funds in enveloppes. I now have to work on not taking funds from one enveloppe for a different purpose! Sometimes the car maintenance fund has to loan money to the grocery fund at the end of the pay period. Already got rid of cable TV. Netflix is the next on the chopping block - it eats up my leisure time!
I'm with Larry on the topic of clothing. I have owned most of my clothing for decades. The vast majority of the items that are less than a decade old are either gifts, hand me downs, thrift store purchases or purchased from Walmart $3 clearance sales. I rarely spent more than $25 a year on clothing and normally spend much less than that.
Alright, Doreen! Way to go.
I’m thinking another way to save on clothing might be to try to keep in a consistent size. I’ve had periods in my life when I put on weight and had nice clothes that didn’t fit and had to buy bigger sizes. But I found walking which really helped and even better free.
@@elizabethnicholas1939 That is a good option for those who are not in wheelchairs (my Partner and I are both disabled). I used to love to go on long walks when that was an option for me. In fact, back in the 1990s, I used to even go hiking and camping. I miss those days.
I do it differently. I have 2 sinking funds-one long term and one short term. The short term one is for things that I need to pay this year:car insurance, car registration, gifts, car repairs, dental work, vision care, etc. The long term one is for things that that are long term items that I know I will need to replace but that will last more than a year: tires, sofa, major appliances, etc. That way I can put aside a small amount of money each month to build a fund for those items when the time has come to replace them. I have each of these at a separate financial institution.
It feels like half of our budget line items are sinking funds. But I love to know that each upcoming expense is paid for well in advance !
Two categories I added this year was graduation and wedding. My niece is graduating college and getting married. I need money for gifts and clothing for events and it's the best way for me to save.
I thank the Lord for my repairs sinking funds. Even though I have used my Emergency Fund. I haven't had to use debt lately to cover those repairs
Sinking funds have changed my finances for the good. I have been debt free but on a smaller income for several years & the sinking funds help me plan. I “sharpen” my calculations every year. Some categories I include: yearly professional fees for certifications; medical deductible expenses; yearly subscription such as computer anti-virus; tax preparation expenses; car license renewals, repairs-maintenance. Great video on this topic! Wish I had known about this years ago!
Wish we had understood sinking funds four years ago when we were expecting a baby - it's not like we didn't know he was coming! Thankfully we've learned a LOT since then. The thing I have come to love about sinking funds is now is I never have to feel guilty for spending money on expenses I planned for and already have money designated for. It's so simple, but a total game-changer!
Excellent, Scott. It would have greatly helped us in our child rearing years as well. At least it's not too late to learn and apply the technique.
We had a “we will deal with that when it comes” attitude for far too long. All it brought was unnecessary stress. Now that we have sinking funds life is so much calmer .
@@ayela562 you're absolutely right. Who wants to live in cycles of dread and panic?
I’m expecting my first baby, and we started a sinking fund. It’s going to make shopping for the baby so much more fun. I can wait and am so thankful we’re able to financially prepare.
@@kristen1225 Congratulations! It will feel great to be so prepared!
Glasses - my husband and I both need glasses this year, and we usually get both regular glasses and sunglasses.
Carpet - replacing carpet for four bedrooms.
Vacation - we don't have a destination yet, but we still put money aside.
Birthdays - for kids and grandkids.
It is working for us so far.
I love sinking funds. Game changer! I make more money during the summer, so I try to pad the sinking funds during that time of year.
Yep, save while it's coming in then it's there for when you need it. Great, Rachael.
Just started a Christmas, craft, haircuts, office fund( yearly hospitality dues, tshirt, gifts) and a $5 challenge! New to sinking funds and excited!
Super, TAbs!
What is the $5 challenge?
@@anonymouslyfrugal858 It is my own challenge- I’m just trying to save any $5 bills that I come across. Hopefully I’ll have at least $100 to just use how I want. I’m really concentrating on the Christmas and office fund.
I'm doing my sinking funds by the snowball method. I find it more effective to focus on, and fund, one category at a time rather than putting small amounts in a variety of categories. Ideally all categories would be funded by December 31 for the upcoming year.
We pay our property taxes monthly, which eliminates that category of sinking fund. Last autumn I pre-paid our annual house insurance in full, so now that's a sinking fund. I'm thinking of going back to monthly billing as the new insurance company does not charge a premium for monthly payments. I spent a few hours online/phone and ended up saving 100$/month. Up until then I had just kept accepting what the original insurance company offered each year.
oh my goodness I just heard a while ago, I think it was Ontario mentioning they are thinking of doing a rain water tax...and I laughed at the idea....we they must have got the idea from USA......thanks so much for this info...you are always so nicely detailed, so easy to follow...
Great video! I have several sinking funds including car repair, car insurance, renter's insurance, car tags, and new bed. I need to add new phone and gifts after watching the video and reading the comments.
I always have my sinking funds savings. They are for: property tax, Xmas presents, kids' birthdays, summer holiday, car maintenance, annual gym membership. I'm good at it 😂
Awesome!!
I do a bit of sinking funds, but not for all areas. I do for my property taxes, and also for my water, sewer, and sanitation, which is billed quarterly. After listening to this, I understand it better, and now I may be able actually start.
That's what we like to hear, Sheila!
Not sad at all. I have a sweater,who knott my mam,who is 37 years old. Still Love it.
Thank you for you're Advice.it is a great Help👍
I am so happy I found you. You simplify everything...I have been overwhelmed by information overload. Thank you.
I only have a sinking fund for big items like my taxes and insurance. I live so cheaply that I don't need to focus so much on the little things. I did however call my car insurance company and asked for a reduction because I drive so little. They dropped my bill by $120 a year. It never hurts to ask!
Hey, awesome reduction on the car insurance! You're absolutely right. It pays to ask.
I get paid from my employment every month only once per month! So every month I set aside a certain amount every month!
Such good, helpful information! Keeping sinking funds filled back up as soon as it is used is good.
I use a credit union & I can have unlimited savings accounts & each one has a separate line item on my budget & they are labeled for what it’s for. Thank you for this info, I am revamping my budget due to some big changes in my life.
Great video, Hope and Larry. I like the idea of prioritizing sinking funds and finding ways to reduce them...I have sinking funds for a new car, car maintenance, taxes, travel and a wedding (if I get married). Ally bank is perfect for sinking funds because it allows you to save in different buckets. You can also name the buckets and move money between them.
We had a black lab growing up!!
I have cash envelopes but I may have to redo them now!
Thank you for another great video. I can’t get over the «rain water tax» 🤦🏻♀️
Thank you. No, we can't either...
Another quality video! Emergency funds and sinking funds both play good roles. Planned to save 7+ more years for a car (@ $150/mo sinking fund, had $3K) but driver forced my older car into freeway wall & fled, and had to get a $$$ replacement car ASAP for work using good chunk of emergency fund. Lucky I'm OK now but life does have big and small curveballs at times.
I've watched a number of videos on sinking funds and noticed that provision for cats and dogs is missing. They would be a good addition to anyone looking to add an animal to a household.
Love the visuals..effects, info and the encouragements in this video!!!! 💕🙏🏻
It's awesome that vacation is at the top of your list lol :) we love you guys and thank you so much we have 5 kids and working hard on budgeting you guys are a God send!
Congratulations on 40k subscribers!
Thank you, Michael!
I live in Minnesota and go to North Dakota for car repairs. I have budget mechanic there. I had both wheel bearings replaced on my explorer for 354 dollars. Most garages would have charged me 650 bucks per side. I need lower ball joints on the explorer which will be 325 dollars at my mechanic.
Good detective work!
smart, out of the box solution...nice thinking.
I have a pharmacy and a laundry sinking fund as well as alot of the ones you listed in your video.
I was laughing at Jacket from 1978 that Larry still wears. My birthday was May 30, 1978 Larry's Jacket is as old as me. I actually have outfit from when my nephew was 2 here's 30 now. So me and Larry definitely have the same mindset 😂.
Thank you for explaining Sinking Funds.😁 I've heard about it recently and didn't really know what it was and how to apply it. Also thank you for examples for people on low income. It's encouraging that we can have more control of our budget and not feel helpless to the circumstances.
I have sinking funds for prescription medicine, property taxes, home insurance, car insurance, life insurance, vehicle registration, Christmas, cell phone, cat meds, car maintenance, lawn treatment, compassion international, farm bureau membership, glasses, and hair.
This is such a wonderful breakdown. Thank you!
Ally bank has up to 10 buckets to categorize money in one account, but I haven’t tried it out. They came out with it after I opened a bunch of accounts :D. Some buckets I have that weren’t listed are new computer, emergency travel (for family), new car, moving, and new phone.
You were probably their inspiration!
@@larryware1 🤣
Is Ally Bank easy to use and is it secure?
@@HappyLife-wv5ms It depends person to person if it would be considered easy to use, but for me it is easy to use.
I would leave it up to each individual to do more research on things like FDIC.
After years of Jack N' the Box getting my order wrong, even hamburgers with no meat before meatless was a thing, with no apologies, the worm turns. There APP that offers rewards points flips its sprockets, it kept giving me upwards of 65 points, renewed each time, each dollar spent=one point & I don't spend that much. I got like five $6.00 sandwiches in a row. Power to the consumer.
Another great talk from you thank you. I love organising my sinking funds it is fun and very rewarding Take care Anna.
You're welcome, Anna! Those funds take the mystery out of budgeting.
You are so right they do.
I've made a lot of categories for Sinking Funds...
Insurance car & house
Car Maintenance
Glasses
Kids activities
Date Night
Homeschooling
Christmas
Birthdays/Anniversaries
And several others
I just started this year and I'm trying to figure out how to get the funds saved as funds are also needed. So I have Insurance coming up and don't have enough in that fund yet.
I love you two! 😸
Awe, thank you, Cara!
World love to know tips and tricks on saving money for homeschooling. I have three boys, the oldest is 4 and we are just now looking into preschool curriculum and would love to know ideas to start us off right.
I save up during the year for each sinking fund by putting a fixed amount (1/12 of total expense ) every month on a couple of free savings accounts by autopayment. Every savings account is labelled so its so easy to see what I have for each sinking fund and have it Ready by the time taxes and healthcare will have to be payed. It took me one year of paying and saving up for next year and afther that, it's just a bit of very month and no more worries😅
Super, Piglets. Great system!
@@larryware1 thank you it works for me☺️
We got a cost-of-living raise this year, but we decided not to use it in our budget. It goes in to our savings account each month and by the end of the year I'll have enough to buy a refrig. if we our old one dies. If it doesn't die, we will just keep saving the funds for an emergency for replacing old house items when the brake and can't repair them anymore.
Could you walk us through how you do your monthly budget in the app and reconcile it? I've struggled to really use Every Dollar.
I guess I was already doing a sinking fund just didn't recognize that term!
Love your paparazzi necklace
Ty for doing this, Hope & Larry! Interesting and informative as always. GBU, both! 🌷
Our pleasure! Glad you liked it.
Little known fact.installing security cameras around your property inside and out,motion.sensors,even a dash cam can actually lower insurance rates.call to be sure.also,homeowners,call up your insurance provider to get their repair people for home repairs.it will lower your rate.plus,they are lisenced and bonded through the insurance company.double check to be sure
Great ti[. Rochelle!
Good Evening Larry and Hope!
Hi, Mary. Nice to have you with us.
What is a sinking fund? A sinking fund is all of my funds because with inflation my funds are sinking. lol I have worked and scrimped to set aside for non monthly expenses like car expenses, holidays and birthdays, and pet vet expenses. Savings is pretty weak.
It is certainly more challenging now.
seems like you're saving really hard too, which keeps you afloat when needed rather than going down into the hole of debt. nice job!
In England we pay 'council tax' which is money we all pay per house towards council services such as policing, waste collection, schools etc. I pay £150 a month for a small 2 bed bungalow. The amount is decided on property size. They will lower it for unemployed people etc.
Is that similar to your property tax ? We dont have that here.
Great question. Yes, very similar. Except that if you rent, you don't pay the tax - the property owner always pays the tax. The amount we pay is never lowered, except that in some states people over the age of 65 who live in the property as their primary residence can apply for a discount if they are low income.
This is how I work my sinking fund. First I get it if it's urgent. Then I estimate how much it'll cost per year. Divide by 12. Save that amount each month. Ex: shoes. I purchased the shoes I needed then started saving monthly so I can purchase them at once when the year is up.
However, clothing:. I set an amount each month. $20. Accumulate each month but purchase if I need something leaving the balance. If I use it up, I can't afford to buy any more. I wait till I have money again.
What's your thoughts. Am I doing myself justice?
I initially had just a Christmas sinking fund at my credit union while working my debt-free journey. Then I added the Emergency fund. About 2.5 yrs ago I found an online bank that paid better interest. I switched my savings to the online account. The savings rates have since increased numerous times since about May '22. I was able to have my property taxes removed from escrow after paying on my Conventional mortgage for 2 years.
Now I have a sinking fund "Bucket" attached to the online savings account for property taxes/Homeowner's insurance, and a "Bucket" for car insurance. I should probably create a "Christmas bucket" too and switch my Christmas savings from the credit union to the online account. I just don't want to see credit unions eaten up by banks.
I’m thinking I will put my automatic payments in my first sinking funds category before moving onto more categories.
Thank you for both Sinking Fund videos!! You did a wonderful job explaining them. My question is about using Everydollar for them. Do you set them up as a "fund"? Also, do you keep your sinking funds in one account and keep track of each fund on a spreadsheet? I tend to see the balance and then not keep good records of how much money is for which sinking fund item. Finally, do you have any tips for dealing with the "I need the money for something else now and when the time comes we'll figure out how to pay that big bill" tendencies? THANK YOU!! Blessings to you.
I would like to pick your brains about something.
I just started drawing my social security.
I am wanting to replace my 2008 Kia optima eventually ( right now 145,000 miles).
It is not feasible right now because my husband still owes for his 2017 pickup for another year and we have business loans on our carpet cleaning van & machine.
So for now we’re putting new shocks on the car to make it a more comfortable ride and will drive it until we are able to afford a used Kia.
My thinking is, since we’ve been paying our bills with our rental income and my husband’s SS ch without my SS check , should we put most of my check towards saving for the next car?🤔 4:21
I refer to these as my escrow account and includes things like property taxes, insurance, etc. I have a separate savings account for escrow and one for personal uses. I use this term, I guess, because of the years I worked in mortgage banking and know that the monthly mortgage payments include principle, interest, taxes, and insurance (PITI). The taxes and insurance go into an escrow account that the bank uses to pay them when due. Different terms. Same concept.
Gosh, Martha, I love this analogy. What a great way to think of them.
Would you have water heater, a/c, stuff like that in your home maintenance sinking fund? Those will eventually need to be replaced but don’t know when.
Such sweet couple 😊 congratulations
Got a really late start on trying to educate myself on living on less.
..but at least you started! We wished we had been better at it in our earlier years.
Also, should the buckets be non accessible? What if I need it? Thanks ❤
I know sinking funds is the proper term, but it just doesn't work for me - haha😁. So I call them Save up for categories. ☺
I can understand that, Julie. I always think - Titanic - when I hear "sinking funds." The word "sinking" just isn't very appealing.
Hey how did you know I’ve been eyeing off that Gucci bag😮. I’m taking that as my sign I probably don’t need an expensive bag because I won’t have any money left to put in it! 🙄🤦🏼♀️
Vehicle registration savings account,project account savings account,mortgage principle payment only savings,that's what we have for 2022 account
I think of a sinking fund as "A Bill You Know Is Coming Annually". Save for it.
If you don't have a sinking fund or an emergency fund, which bucket do you fill first? Or should I do it together?
This is all great, really. But where do you get all this money each year to put into your sinking funds budget. My sinking funds ad up to more than 5 thousand dollars. I don't have 5 thousand dollars in January of each year to fill up the bucket. Even if I reduce it down to the bare bones, I don't have 2 thousand dollars each new year. I am currently using it backwards. Putting x amount into my bucket each pay period. Then removing what I need each time one of my expences becomes due. My question: how do I change that around. There is no money left each month for additional savings.
Granted, you probably can't fully fund the accounts when starting out - while still having to use the money. Hope can better address how she started this process. It was easy with the car categories. After a car was paid off we just kept paying that money to the bank toward an account for a later replacement, but at a lesser amount than the old car payment. I'll have Hope elaborate. She's the budgeting genius in the house.
I think 14:00-15:55 of the video addresses one part of this problem. Also, you might not be able to fund all of them this year, but partially funded is better than not funded at all. You’ll need to slowly build them each up with any leftover money/windfalls/tax refund/gift cash/etc until you reach that goal and then keep saving to fund for the next year. I would whittle it down to one or two problem areas that are expected expenses (for example Christmas and car registration) and work on those first. Review your expenses from last month and see if you can spend $20 less in one category and put those savings to start one of your sinking funds. It’s an annoyingly slow process but it works and you can do it. Even if it’s just $20, it’s $20 closer and $20 less to figure out when you need it.
Also 17:50 they address how to start on a low income 👍
My sinking funds Include: gifts, and treats; which is for a massage, or pedicure, etc.
This might be a dumb question but is Rent considered a sinking fund??
I would say no, But, really you could consider it one if your aim is to save a certain amount every week toward that expense.
How do decide how much for each category. Cthanks
A great place to start is by using the amount you spent last year/time. Also, try to guess how much it will cost by breaking it down into items you will need and/or you can look up how much it would cost you to buy it outright if you were shopping for it today.
You don't mention giving. I'm a tither and I also give offerings from my gross income. This impacts what I'm able to set aside because the returns the Bible promises in Malachi 3:10 are not always financial.. What advice do you have for budgeters who pay tithes and offerings?
We didn't mention it in this video because our tithe is not a sinking fund. We pay our tithe first and budget from the remainder of our money. We also set aside a portion of our budgeted income for additional gifts. When the boys were young we had no additional money for giving. So, we would pray for opportunities to help others and meet needs in ways that did not require money. We wanted the boys to understand that God can use you - even if you don't have a lot of money.
You can't outgive God for sure! Seen this over and over again.
What about monthly buckets?
My sinking funds are as follows:'
Gifts (including Christmas)
Car maintenance
Medical
Electronics
Outings (local with grandkids)
Travel
Personal (Clothes, haircuts)
Yearly expenses
You have your sinking funds very well organized and well thought out.
It sounds like you preload your sinking funds I have a goal amount for the year and load each monthly
Sinking funds do not make sense to me. My sister wanted new countertops but they were “not in the budget” -yet she has been to Europe twice, and Hawaii twice.
Technology. If you have to get a new phone (fails, breaks, waaaaay too old to function anymore), software, monitors, printers (upkeep or new if necessary).
Also gardening can entice you into spending...tools, garden beds, new plants, etc. Too easy to overspend.
Agreed.
So, it appears that a sinking fund is a ledger account for one specific purpose. Broken out to allow focused attention and control.
Prescriptions and medical co-pays.
Car repairs
Next car
Car maintenance
Car insurance
Vet
Cat food/litter
Medicine
Medical co-pays
AAA
Groceries
Garden seeds, tools, etc.
Household repairs
Household products
Vision
Dental
Office supplies
Travel
Move
Savings
Miscellaneous
Gifts
Telephone
Electronics
Etc.
Plus gasoline
Pocket cash
Financial/Legal funds.
Sometimes, some of these categories get only $1-$3. I used to use %'s of income to fund categories. Once during a period of unemployment, I could only put 25 ¢ or 50 ¢ per category. I still added it.
I wear thing things for years and years and years. If clothing gets a hole in it, I find a way to mend it. If it goes out of style, I'll re-style it. I also have shoes repaired...and I wear those for years and years, too. I have historically bought really good shoes...the very best I could. They last a LONG time when well cared for. I used to buy such good shoes that I said I "invested" in them. I only bought a few pairs, because I couldn't afford more. I bought classic styles. I still have them and I still use them. They're extremely well built and extremely comfortable.
You've got it down to a science, Jonna! Love your discipline in adding to your accounts even if it was just a small amount!
@@larryware1 Thank you Larry. Necessity is the mother of invention...and detailed budgeting. 😊
My saving sinking funds are for my rent for the whole year.
I have very strange buckets. Rent, Insurance, cable internet & phone and hydro are kept in chequing account. Groceries and medicine go on a gift cards that I purchase at a discount or gifted and kept in a safe. Gift category is kept in savings account. Vacation/road trip is a $5 cash challenge in which I save all $5 dollar bills in a safe and will put that money onto my credit card before travel. All is kept track in my spending/savings journal.
That sounds like a well organized system, Sandra. Good job.
Groceries on gift cards purchased on discount...smart idea. Where is reliable to buy gift cards on discount? We may have different stores available to us, love the idea.
@@Michelle-bw1xg Safeway 2 or 3 times a year offer is buy $150 worth of gift card and get $10 in airmiles points up to 5 times ($750=$50 free grocery in points= saves about 6.7%. Then on the first Tuesday of the month we also get 10 -15 % off if we spend $50 + and I only shop the sales or items that will give me reward points back. I also use coupons and try to stack them with cash back apps. The reward points can be used to purchase groceries so it can snowball. I also bought Esso gift card for $40 and It gives discounts on gas spending every time and I use it when the reward points are greater. The $40 card is worth $50.
The house that was shown with the fallen tree -is this your house. It is very nice. Just saying.
The tree was in our front yard and fell over our neighbor's driveway. So, the house in the photo is next door to us.
I have approx 20 sinking funds,
Do you have a budget app that you use to keep track of your sinking funds, your budget and your money going out?
Does this work if you need to buy glasses
Rainwater tax? What in the world?
👍👍👍
You forgot health insurance
Hey,ware fam.how is everyone
We're okay. That snow storm is headed straight through our neck of the woods on Wednesday and Thursday. About a foot of snow expected. Yuck!
Here from One hack that will transform the way you…
Hi
Great video
I have a sinking fund for
Christmas
Holiday
Car
Birthday
Eating out
Car insurance
🇬🇧
Do you have all the sinking funds being funded while on Baby step2? I am on baby step 2 . I see it as another 1200 a month to toss at my debt. however. I like the idea of having funds in these areas/ Here are my sinking funds A month
Medical
Christmas
Car Fund
Mower Maint
House Maint
House Tax & Ins
State Farm 6 Mo
Bday/Holidays
Clothing
Kindle/Books
Equals to $1200= each month
Had to go back. Totally distracted by the two slow-motion ladies filling half buckets of water. Some sort of cult? Pioneer cosplay? Enquiring minds need to know.
Probably just stock footage related to the search term "bucket"