Miko I’ve watched all your videos and you’re yelling at us 😂😂 I love it. It just shows how passionate and confident you are. I’m hoping to start my budgeting journey soon. You’ve already changed my life before I’ve even started. Thank you so much!! 🥰🥰 you’re a God send.
Maybe I missed it somewhere, can you show us how you reconcile spending from the sinking funds? How do I track it and where do I put it in my budget recap?
I like the idea of saving for future events, I'll have to give that a try. I believe saving up to pay cash for a house will cost more in the long run as the cost of housing goes up every year. A low interest loan and paying more principal every month makes more sense to me. The house next door sold for $260,000 and 5 years later sold for $400,000. That is why a mortgage is a good idea to me.
I make it work by grouping like sinking funds together. So 'gifts' includes any gifts. 'mini emergencies' includes anything for house car etc As you said sticking to within your means is most important. No point having sinking funds if they exceed your incoming!
I saw this luckily on my instagram and I got up early this morning and spent 1 hour planning my sinking funds, we have spent 3 years trying to pay off debt and we get quite frustrated we can’t put away savings so I want to thank you as I’m so happy for the first time about our finances!
Thanks for breaking this down. Just what I needed! I've been making my own forms for years, but not as detailed as yours. Thanks so much for sharing! I set up a system so that when I tracked my finances, I also calculated the percentage of income went to each category. I made sure it added up to 100% and then stuck to those percentages as closely as possible. That gave me the ability to keep allotting the same percentages of income to each category when income changed month to month. It didn't change drastically, or I couldn't have gone by percentages. I noticed you check percentages at the end of budgeting. I checked them at the beginning to use them as a part of budgeting, but only after checking them at the end of expense tracking at first. I used percentages basically to tweak category allowances.
I know this is an old video. But as far as sinking funds. I use mine for bills that happen yearly or quarterly. Ex garbage, auto tags, subscriptions..etc
Hi, I’m from Philippines, I just subscribed to your blog and youtube channel. I really love your videos, it gives me a lot of ideas how I can budget my paycheck. 😊❤️
I like to break my sinking funds down into quarterly rotating funds. I mapped out when certain larger bills would come out and I give myself 3 months to save for them and try to have them fully funded before the quarter that they’re due. Ex. I wouldn’t start saving for Christmas until July and it would have to be funded before the end of September so I could use it in October and November in preparation for December
What would it look like if you have say a car maintenance sinking fund that was growing and depleting (at least some of it) throughout the fiscal year?
Great videos. I’ve learned soooo much on to see where my money was going. Thanks BTW your videos use to been full screen. Is there a reason why the last couple of videos are in a small screen. Do i have to change my settings for your channel?
That's my son nick name! I have a question. My friend has no credit. I told her to get a credit card and paid it off when she get the bill. Was that a good suggestion?
I have three sinking funds. I have one for vacation, one for Christmas, and one for all of my spending that is not on a regular (monthly) basis. In the third account I save for kids' extracurricular activities, my hair appts, vet expenses, birthdays, clothing, school supplies, etc. I can't really track that because the money comes and goes every month, but I try to keep over $1000 at all times so when something comes up, it is covered. For example, when its time to pay for swim team for all three kids (which includes our pool membership), I'm usually dropping around $600 at once. This used to go on the credit card, but now I take it out of my sinking funds. Do you have any idea how to track those areas? The reason I dumped them all together is because I am not able to save for all of them at the same time, but since I don't spend for all of them each month, the money is available when needed.
I keep it all in the same saving account but keep a written tracker so for instance our medical is capped at £200 our car is capped at £200 and clothes are capped at £100so ideally there should be £500 in the account once I've needed to take something out of those categories I right it down on our paper tracker xx
So the sinking funds are in cash right? They're in an envelope somewhere that you don't touch till the end of the year or are they separate accounts in your bank ?
Hi budget mum?...am your big fun from Kenya.. I like your content very much. I am a low income earner, yet I need sinking funds. Kindly how do I develope such trackers for myself to assist me with discipline?🙏. Alternatively can you make for me one?
I’m new to your channel and I think I’m confused (not bc of you) but what is the difference between sinking funds and cash envelopes? Or is there not one ?
Plain Texas Girl Think of sinking funds as things you’re saving for, for the future ( i.e birthdays, Christmas back to school). Cash envelopes are comparable to your fixed expenses (i.e rent, utilities) however, those may vary. For instance gas for your car. You need gas for your car every week and you’re budgeting how much you think you will spend every week but sometimes you may use more or less. These are varying expenses that you still need. Sinking fund in a sense is not a necessity whereas cash envelopes are. The cash envelopes may change. Hope this helps.
Also, sinking funds will eventually go away and you can use those savings for something else. Cash envelopes is a necessity that you’ll use constantly throughout the year.
Is your monthly amount made up of 11 payments if you don't save in the month that you spend it? Would it not be easier to do your colouring boxes by the amount you put away each month?
