Emergency Fund vs Building True Expenses

We all know we need to save, but it can be hard to know HOW to save. Discover the necessities and differences between having an emergency fund and building your true expenses (or, as they're more commonly known, sinking funds).

__________

Resources

How to Create a Budget Template in YNAB

Budgeting in Uncertain Times (Needs vs Wants Budget)

Ideas for Cutting Spending

Read: The Ultimate Getting Started Guide

Watch: Four Budgeting Rules for Less Money Stress

Join: Getting Started Free Live Workshop

Listen: Rule One Broken Down

__________

Sign up for YNAB’s weekly email newsletter with the week’s best budgeting wisdom and inspiration!

__________

Come say, "Hi!" on social:

And read our BLOG here:

#budgeting #youneedabudget #ynab

[maggiebookworm]

Anyone else think the YNAB subscription should be a built-in category on YNAB? haha. It took me 3 years of using YNAB to finally budget for that yearly subscription, oops!

[JaesWOverley]

Hannah, have you been reading my comments on Ashley's videos? Building sinking fund amounts for True Expense categories truly make the benefits of YNAB shine. Whenever I discover another annual bill I immediately add it to our Annual Expense Category Group and set up a goal for it. We also have an Emergency Fund category that helps alleviate any anxiety about the unknown. The crazy thing is that it appears Murphy and his Law seem to know this and generally stay away. Lastly, thank you for making me laugh out loud at another of your wonderful videos! I look forward to next week!

[esk]

This was such a game changer for me. Before I heavily relied on the category "stuff i forgot to budget for" and now I don't even have it anymore. True expenses get treated like monthly bills now and i love how my targets give me peace of mind.

[kkmrad]

I love the bloopers / extra bits at the end! I think I could listen to you talk about anything even if it isn't budget related. Thanks for the video, I'm off to make more categories!! (:

[AurelioPita]

Finally someone talks about true expenses. I was having a bad time trying to figure out how to deal with it. Using emergency fund didn't seem right.

[wannabedal-adx]

One aspect of this goal setting (not specifically a YNAB type goal), is to save up enough to cover auto, home owner (or renter's), and other insurance deductibles. That could cover some of your true expenses especially if you have a loss or claim in that area.

[ksio]

Feel like you’re reading my mind this week. I was just searching for more info on sinking funds vs emergency funds. Wonderful timing! You’re a crackup and my kids enjoy watching with me. Great job!

[siwenstokes]

Hannah, I really like your teaching style! Keep up the good work!

[colin]

I've had a variety of sinking funds in my budget for a number of years (I've gotten to calling them Rollover Funds). Car Maintenance, Annual Renewals, Christmas 20XX and Family Travel (weddings, funerals, et al).

[BlackPrl]

Brand new to YNAB. I love the videos and presentation! Thank you to the team that makes it possible!

[TheNicoliyah]

Sinking funds have been a revelation to me, especially now with the new online banks that allow you to have separate savings pots in one account.

[keithmallett]

Truly... Wow, Hannah you've come so far - you started your videos with needing to budget for a dating service and now you're budgeting for kid's summer camp???? One of those four walls you talk too got the better of you :) I guess that was predActable :) Another great job! Keep it up!

[wiseman]

Great video! Every few months vet check up during the year sinking funds. Taking pet to the vet because he or she looks very sick emergency fund.

[ceciliaruns]

I wish you would make more videos! 😁 I've watched all of them now!

[wt]

Looking forward to the next video, because that’s something I’ve been wondering about!

[devlinfae]

Finally creating a True Expenses category! :)

[fallondavis]

Love these videos. Can’t get enough!!!

[MichaelHorst]

When will we have that amazing new color scheme in the app!?

[ThuyNguyen-buge]

Caring for future you - that is beautiful.

I care for so many people.
I should care for future me as the center focus that will radiate love and care for others.

[tusharbhuiya]

Lady's a great presenter - love the humour!