An Easy Beginner's Guide to Sinking Funds

Welcome to an easy beginner's guide to sinking funds. In this program, we’ll explain exactly what sinking funds are, how to use them, and answer our most-asked viewer questions about sinking funds. Along the way, we’ll show you OUR OWN sinking funds for 2022 and (super importantly) give you advice on what do to if your budget is TIGHT and you don’t think you can even have sinking funds. We did it for YEARS on a low budget while raising kids and we’ll show you the exact process we used every single year to set up our sinking funds.

* Links included in this description might be affiliate links. If you purchase a product or service with the links that we provide we may receive a small commission. There is no additional charge to you!

// SUBSCRIBE:

//WATCH THIS NEXT:

// FREE RESOURCE

//SHOP OUR COURSES!

//CAMERA GEAR USED:

○ Microphones-
Shure Microphones to plug into a mixer: (Great for interviews):
Blue Yeti mic with stand (Our favorite mic for Live Broadcasts) -

//TOOLS & SERVICES WE RECOMMEND:

○ Discount and Coupon Browser Extensions:
* Honey: (Coupon Browser Extension)


//COME SAY HI!

//ABOUT:

We're Hope and Larry and we raised our four sons, debt-free, including paying cash for our home (when our salary averaged less than $40,000). For tips on saving money, budgeting, paying off debt, and setting goals (while living with a spirit of joy and abundance), subscribe to us here on YouTube and visit us at our website and on social media.

DISCLAIMER:
Views expressed in this video are solely those of Under the Median and do not reflect those of Creekmur Asset Management, LLC (CAM LLC). Investment advisory services offered only by duly registered individuals through Creekmur Asset Management, LLC (CAM LLC), a Registered Investment Adviser. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

//CONTACT:

[realtorkathleenoconnell]

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!

[Clic]

It is so nice to see a couple who works together and communicates about their goals.

[susanbartlett]

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!)

[tjmarie]

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!

[goheen]

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...

[lisaward]

I get paid from my employment every month only once per month! So every month I set aside a certain amount every month!

[brianpulliam]

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

[janetstonerook]

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!

[carolynm]

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

[Ella-kepc]

My sinking fun includes food for the holidays, things for the home, Christmas, birthdays love offering this one is to bless someone in need

[ayela]

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 !

[lisafromindiana]

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.

[nt]

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.

[dianvandevyver]

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 😂

[doreenplatt]

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.

[scottdelong]

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!

[nancybrewer]

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.

[angelaholland]

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.

[mariannewesten]

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👍

[lucysteele]

We had a black lab growing up!!

I have cash envelopes but I may have to redo them now!