How I Use Sinking Funds In My Budget | Sinking Funds Explained

🙋🏼‍♀️Don't Put Your Eggs In One Basket! I Have Multiple Brokerage Accounts!

Videos Mentioned:👇

How I Use Sinking Funds In My Budget | Sinking Funds Explained
Our SINKING FUNDS! -What is it and WHY you need them!
Technical Definition of SINKING FUNDS: A sinking fund is a part of a bond indenture or preferred stock charter that requires the issuer to regularly set money aside in a separate custodial account for the exclusive purpose of redeeming the bonds or shares.
A better definition is.... With a sinking fund, you save a small amount each month for a certain amount of time before you make your purchase. You determine how much you save by taking the total amount to be spent and dividing it by the number of months you have left until you must pay.-----------------
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I am not a financial advisor. The ideas presented in this video are personal opinions and for entertainment purposes only.

[freedominabudget]

🙋🏼‍♀️Don't Put Your Eggs In One Basket! I Have Multiple Brokerage Accounts!

Videos Mentioned:👇

[jangle]

We pulled from different categories for the first time this month. We wanted to still stay on track and pay off the rest of our debt (my husband’s truck) which we did yesterday, but our fence went down when Hurricane Zeta hit a few months ago and our dog was no longer able to go out back by himself. We finally got it fixed this past week, but it cost more than our $1000 emergency fund, so we had to also pull from two other funds. I’m just glad we were able to pay for it in full and also pay off our debt. Plus, I know we’ll start building the emergency fund back up next month, so I wasn’t too worried about pulling from it this late.

[igornawrocki]

I looked at your videos and I saw some hate comments. I feel so sorry for you. I hope you’re happy. Ignore the haters.🙏🙏🙏

[liz_hughes]

Love your shirt!! Great video!! Really like the idea of a spreadsheet for sinking funds and examples of sinking funds

[ELIFI]

I'll have to watch this after FinCon. I just added it to my watch list!

[MillennialonFIRE]

Great video! I always like see how others budget their money.

[turisteandoentexas]

All right! So sinking funds are a little like emergency funds, but designated for each kind of unexpected expensed? I will take your example and start designated $ to give, It's funny I never put it on my budget and when I least think about it I went over it because I didn't plan to give, but I gave. Thanks for that eye opener explanation ☺️

[arthrodea]

Question: I put my emergency fund and a sinking fund for a down payment into a high yield savings account. But for funds I use regularly, I'm unsure about how to deal with the 4 day delay it takes to transfer funds from my checking account to the high yield savings account and the fact that I'm limited to a few transactions per month. For e.g., if you have a "clothing fund" and you buy a dress and a "Christmas fund" and you purchase four presents over the course of a week. Do you basically cash flow that from your checking account and then later transfer funds around from your high yield savings account? I fee like I have to just keep the funds that I use regularly in my checking account or maintain an extra high balance in my checking account all the time to have the available funds to make those purchases, until I can transfer the money back over (which feels like I'm defeating the purpose of sinking funds if I have to separately maintain a pile of cash)

[kaylanicole]

i still keep my sinking funds in cash for some reason it just works well for me

[fofita]

Can I ask why you chose to not escrow your house taxes?

This was a good reminder to double check when my Amazon prime membership renewal was... it’s this month!

[samanthalee]

Do you keep sinking funds with your emergency fund? I'm confused about the logistical difference between the two.

[meghansmith]

Ur stunning wow, lets hold hands under rainbows lol hahhahahah. Sorry im weird...Meow