This Simple Money Hack Changed My Life
Вставка
- Опубліковано 27 вер 2024
- My favorite places to keep sinking funds currently:
✅ Wealthfront ➝ penniesnotperf...
✅ SoFi ➝ penniesnotperf...
✅ Capital One 360 ➝ penniesnotperf...
Sinking funds are a part of budgeting that honestly changed our lives. Before I implemented sinking funds I could not figure out why month after month our budget failed.
Have your heard of sinking funds but you’re not sure what they are?
This video will give you an idea of what these actually are, where you keep them, and why you should be using them.
Irregular or unexpected expenses are often what blows up someone’s budget. They create a monthly budget but then a large expense comes along that was not accounted for and destroys the plan. This leads most people to think that budgeting doesn’t work.
Enter - sinking funds.
What are sinking funds?
Sinking funds are actually the key to fixing most budget failures.
- a sinking fund is really simple
- It is basically a savings account you contribute to over time in order to save up an amount to spend
- This can be for big expenses, yearly expenses, or expected but irregular expenses
This allows you to be more prepared for those large expenses that happen throughout the year or at unexpected times.
Sinking Fund Examples
- Some examples include a sinking fund for a trip you want to take, for car expenses like repairs, or for a bill you know is coming like 6 month car insurance.
- Some common unexpected expense sinking funds include:
- Car repairs
- Medical bills
- You know these things will eventually happen but you don’t know when.
- Some common irregular expense sinking funds include:
- Car insurance (you know it’s due every 6 months)
- Property taxes (you know it’s due annually)
- You know these expenses are coming down the road but they aren’t due right now. So instead of being surprised and pulling out a credit card you use a sinking fund to save up for them over time and pay them in full when the bill happens.
Where to keep sinking funds
This all sounds great! So how do they work in reality?
There are two methods for sinking funds:
1. You keep a record of the money assigned to each sinking fund category but all the money is in one pot in a savings account.
2. You create separate accounts for each sinking fund and then save money into them individually over time.
3. Create buckets inside a savings account with a bank like Ally which combines both methods - your money is in one account but it’s assigned to items within the account.
The best place to keep sinking funds is in a hysa at a bank like ally or any of the ones I shared in my video about high yield savings accounts.
This is money that you will eventually be spending so it needs to be liquid and readily available for you when you need it. But you always want to earn money on your money which is why a HYSA is a great option.
Hopefully this video has helped you better understand sinking funds so that you can implement this in your own budgeting method!
➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝
CASH BACK APPS
⭐️ Rakuten ($20-$30 bonus cash back app) ➝ penniesnotperf...
⭐️ Fetch Rewards (Receipt scans app, $2 referral code, MV7RR) ➝ bit.ly/2G0vEtZ
⭐️ Ibotta ($10 bonus cash back groceries) ➝ penniesnotperf...
⭐️ Upside (Cash back on gas) ➝ penniesnotperf... Code: RXZNW
➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝
CONTACT ME:
🔹 Website: penniesnotperfe...
🔹 Shop: shop.penniesno...
WANT TO SAY THANK YOU?
🔹 Buy Me A Coffee: shop.penniesno...
SEND ME LETTERS:
Mary
P.O. Box 240981
Memphis, TN 38124
➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝ ➝
**The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time. I am not a professional and this channel is for entertainment purposes only. Do your own research!!
*Affiliate links. I get commissions for purchases you make through links shown here. It doesn't affect your purchase in any way and the commissions help support this channel. I only recommend items I personally use and appreciate the opportunity to share.
My favorite places to keep sinking funds currently:
✅ Wealthfront ➝ penniesnotperfection.com/wealthfrontcash
✅ SoFi ➝ penniesnotperfection.com/SoFi50
✅ Capital One 360 ➝ penniesnotperfection.com/CapitalOne360
Yes having sinking funds are awesome. In the past had to dip in emergency fund to pay my property tax. Now I allocate 50-100 every two weeks and so when it’s time to pay it. I just hit submit. Sad I have to pay it but it’s less stressful. Now 80% saved for my vacation.
So much less stressful! Vacation sinking funds are my favorite sinking funds!
I just fully funded my portion of property taxes (estimated of course). Love sinking funds! ❤
Albeit a little extra, I've found that i needed 2 different HYSAs in 2 different places/banks. One is for revolving funds spent from frequently or annually (car, taxes, annual subscriptions) & the other is for more long term goals that i don't need within the next 3-5 years. 😊
Good day! Reserves are always good. Less stress when it comes to money management. 👏🏽👏🏽👏🏽
Feels so much better when you have $$$ put back :)
I like Ally buckets feature. One account with money categorized. When ready to withdraw I select which bucket I want money to come out from.
I've done videos on Ally before... it's a solid choice!
prepare for the irregular ☺️
Always!
Hi
My credit union doesn’t have a high yield accounts so what do you recommend for me to do ❤ thank you
Hey Phennis, I just watched your video and I must say that it was really informative and well-made.
I was wondering if I could help you edit your videos and repurpose your long videos into highly engaging shorts? I can also make high CTR thumbnails for your channel
❤
👍🌲
😊❤😊
Presents for family members can also be a big expense on a yearly basis.
It really can!
I didn’t know you could make those different categories in Wealthfront thank you!