How To Set Up Sinking Funds | Financial Goal Setting | Aja Dang

Empower is the money management app I’ve been using for a few years now. I trust the Empower Card* with my sinking funds, and I recommend you try it out because you get paid up to 2 days faster^, earn cashback up to 10%†, and can count on Cash Advance up to $250** with no interest or late fees if you’re ever in a jam between paychecks.

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* Empower is a financial technology company, not a bank. Banking services provided by nbkc bank, Member FDIC.
^ Early access to paycheck deposit funds depends on the timing of the employer's submission of deposits. Empower generally posts such deposits on the day they are received which may be up to 2 days earlier than the employer's scheduled payment date.
† Cashback deals on Empower Card purchases, including categories, merchants, and percentages, will vary and must be selected in the app. Cashback will be applied automatically when the final transaction posts, which may be up to a week after the qualifying purchase.
** Eligibility requirements apply.

[AjaDang]

Just to reiterate - you do not need to have sinking funds for your monthly bills - I am a psycho. Focus on things that are most important to you. But please also remember, your sinking fund is NOT your emergency fund. Those are two different things with different purposes.

[rdkllducky]

Pro tip: if you don't have friends you won't need to go to destination weddings.

[DebtFreeDee]

Bills saved for the year?! 😳 this is what I'm talking about! 💃🏾👏🏾 When I was paying off my consumer debt I couldn't get with sinking funds but before starting to pay off my mortgage debt, I started funding a couple and I REALLY like them! Great Beyonce-level vid! 😁

[Elena-erzp]

I can understand why Aja has a sinking fund for her bills - with the type of work she does, her income must fluctuate monthly.

But for someone like me - who’s income is the same every single month and will only change if there is an emergency like illness or losing the job and then an EF would be used, a sinking fund for bills is unnecessary.

My sinking funds are for home maintenance, a new-to-me car, travel, and then this lump account for gifts, holidays, annual things like flood insurance, auto insurance, car registration, car maintenance etc. Not nearly as organized as Aja but it works for me. :) Sinking funds really do relieve a lot of stress.

[kathleenannvincent]

I stayed up all night recreating all of the tracking sheets and being real with my budget. Love all the resources! Eyeing the release for more physical MSTRPLN and academic journal!

[candy]

I need to have a sinking fund just for eating out 😅 I cook at home often but those restaurants and eating out trips definitely add up especially with this summer weather when i want to go out every weekend. I just started putting money away in my vacation account and it’s great because I’m leaving for Cape Cod this weekend and I’m happy I have money put aside for it. I love budgeting and saving money, so this is fun for me

When I go on vacation I hate penny pinching. I put enough aside so that I can enjoy my vacation rather than stressing about paying for every little thing 😓 I like to spend money on experiences/food so i always have a large cushion for those categories.

[oleanderwyvern]

I've just been calling sinking funds "subsavings" because my credit union allows me to open as many subsavings as I want for free and I can name them whatever I want. Got my first double-digit per hour job this year and immediately set up automatic distributions for any "excess" income to the subsavings/sinking funds, each of which is named after a goal (I have....11? I think? Everything from car maintenance/repair to clothing to travel to wedding decor/vendors/bride&groom expenses). It's been SUCH a lifesaver. And of course I'm working on my emergency fund too. If it's a goal with an endpoint, like the wedding, I already have plans for what to rename the subsavings when the goal is reached.

[C_]

Off topic, but the BANGS! I love them.

[amandale]

This video came in divine I’m one paycheque from being debt free and needed a nudge of information in the right direction!!!!

Emergency fund then sinking funds… so

[aznpridebuhhd]

I really enjoyed this video! Both explaining what a sinking fund is, and showing us a real example of a sinking fund was super helpful!

[nerd]

Trying to mentally prepare myself to look at all of my expenses and to not have an instant panic attack. Thank you for your videos and for the encouragement. ♥️

[amandawong]

I can’t wait to start creating my sinking funds. My goal in 2022 is to be more financially responsible and your videos are such a big help. Thank you for breaking it down to where it’s not so scary!

[mikailagray]

This is great for me right now, my sister and her best friend are doing a 30th bday trip and I and her friends sister are coming too. It’s a Europe trip so I’ve got to start saving now

[amandar]

Yessss I get so excited to see new aJa videos !

[brokenthumbs]

These are great financial habits. Your advice helps people enjoy themselves by relieving their financial stress from spending.

[idakramerjensen]

You're such a boss, thank you Aja! I really put my money into a proper system last year, because of you. I'm reaping the benefits now, being without income for months, and having my emergency fund and sinking funds saving my ass.

Also I am taken ABACK by the cost of destination weddings - the balls it takes to encourage people to spend this kind of money 👀 I of course don't know the situation or full story, but just in general... That's a shit ton of money 🙈

[jenniferleth]

Your videos on personal finance are so encouraging. You've inspired me to get a hold of my finances and pay off my student loans aggressively! Thank you :)

[missmalexa]

You inspired me to get my shit together and start budgeting with the new year. I told myself if you could pay off 200k that I could pay off $3k of credit card debt and $20k of student loans. I’m tackling my CC debt and I’m on track to finish paying it off in December:) I don’t know how or why I never budgeted before it has helped me so much

[genealotech]

I just watched your debt free video and cried tears of joy for you. ❤️. I have sinking funds and they are a life saver.

[tiarradesoto]

I love this! I’m not a big numbers girl but the way you do it makes me want to take it more seriously!!! 😍😍😍 i love you!!!