If it wasn’t for you, I wouldn’t even be able to think I could save almost $10k as a senior in college. If you’re motivated, you make it work! Thank you Aja! 😭❤️
If you have the cash then it’s great to pay with your credit card and then immediately pay it off so that you build your credit score without incurring interest or debt!
You 100% inspired me to start sinking funds at the beginning of this year! I have a category for christmas gifts, weddings/gifts and bachelorette parties and new to the list is MY OWN WEDDING! I got engaged this week and cannot wait to start planning and preparing!!
First month of being secure in my job so worked out my budget (first proper month) and set up a separate current account that I can transfer monies to. I have savings for beauty (eyebrows/hair/ facial), cat, e-fund, subscriptions and Christmas. Setting up a standing order for £150.00 and see how we go. I worked out that I will have saved for my hair cut well ahead of the appointment. This is the big win for me knowing I am prepared. I have 2 big car bills to pay for and thus I have set up a fund to avoid this going forward. The preparation appeals to my Virgo nature. Hope everyone is having a lovely day xxx
Thanks for sharing. Some Sinking Fund Ideas Car Maintenance Car Insurance Health Insurance (If Self Employed) Dental Medical Expense ( Copays and over the counter expense) Travel Gift/ Christmas Birthdays Home Improvement Big purchases ( Car, House) Family Fund Kids fund Clothing ( If you are someone that shops once a year Like I do) Self care/Beauty Technology ( for phones, iPad etc) Wedding
In the next 2 months I'm going to have a full funded emergency fund and I should also have my sinking fund completed for Christmas! I started my Christmas fund back in February and it's been the best thing ever, I already feel better knowing Christmas will be sorted, especially with my job at risk, I know it's going to be a great end of the year!
I started my first Christmas sinking fund at the beginning of 2020 and holy crap it’s a game changer!! I usually spend $500-1000 every year on gifts. However, I started saving random amounts that add up to $840. I put 26 amounts on a little piece of papers in a Pirouline tin can, (as I get paid 26 times in a year) and then I would take a piece of paper out each time I got paid and would transfer that to savings. I’m usually trying to use my last three checks of the year on gifts and would always come up short and transfer from my savings. This year, I’m able to use the money I’ve been putting back. It’s a great feeling. Thank you for this video!!!
I love this concept💡 people look at me kind of funny when I describe my sinking funds, but has given me such a heightened feeling of financial security. It is so motivating and I would totally recommend it to anyone 🤩
You really are an inspiration to me Aja!! I never grew up with any kind of financial literacy other than never borrow money LOL. Your journey has helped me so much! Just finished school and am getting ready to pay those student loans! I feel more confident because of you!
Sinking funds are great! If you’re someone like me.. even if I have money readily available, I will still feel guilty for spending money on big purchases for myself. If you dedicate money in a sinking fund, it helps me feel like I deserve it (of course I’m talking about indulging in things and not things like insurance) 😋 Great advice Aja~~
Just started doing sinking funds this year! 💰Thanks to your videos 😊 they are amazing. I did a sinking fund for contact lenses, moving expenses, and now Christmas gifts/travel. I can’t save much to the funds because I’m still paying off debt but it is really nice paying for big expenses without going way over budget.
I use sinking funds for my vacations and it feels GREAT when it's time to go...fully relaxed, my next big one will be HOA, Taxes and Decor of my new house
I really appreciate your videos! I’ve been able to pay off 3 credit cards thus far. Going to pay off one more next week and then I can just focus on my stupid sallie Mae loans! I very much appreciate you!
It is SO refreshing for someone to be so upfront about expenses and their financial decisions. Please keep sharing this content, as a similarly aged girl I've been trying to get my finances in order but have no mentors or resources to rely on. No daddy Dang here 🤣
Hi Aja, first thing’s first: I love you 🤟🏻 🥰. Second: just because of you, I startet my sinking founds. I have one for my kids (I have 4 - for Christmas & their Birthdays), one for everything car related (insurance, taxes, inspections), one for home- goods, one for my monthly eating & drinking & gas and one for me (obviously the smallest. But as you says: little thing’s stuck up to a bigger one ... one day 🤷🏻♀️. And you know what? Every year at Christmas I’m soooo happy, having the money already put aside. Also the Birthday of my big girls (twins) are only 2 weeks after Christmas- so I already have that money, too 👏🏻💪🏻🥰💫😇. Thank you for your advices. I’m loving that! Big hug 🤗 from Germany/ berlin 🙆🏻♀️🥰💫😇
My house is paid off. Therefore, since there is no escrow account, I have a sinking fund for my homeowners insurance and property tax. This is a huge expense with both due the same month, and the sinking fund takes away the stress. I also have savings on top of my emergency fund for future home repairs and vehicles. It’s nice not having to stress when the AC breaks and costs thousands to repair!
Thank you so much for your videos - you were doing your debt free scream when I was just getting into Dave Ramsey. Following along with you as you’ve transitioned from debt to savings has been really cool.
I have learnt so much about sinking funds from you. I've never done this before and realize I really should. Thinking of 2 sinking funds: Travel and Move Back to Australia.
I learned about sinking funds from you last year It inspired me to start saving for sinking funds and I too also just paid my car insurance with my sinking funds! 😊 it felt great not having to worry about it.
Love your information, great job, I do same on my car’s insurance have 2, and one truck, paying off the new Honda Accord early $1,200 a month. And paying off house in 2022 as well! Thanks for all the information, my son lives in LA . Been giving him information on money as well. Thanks love the video s
My boyfriend and I use Qapital to co-fund two sinking accounts. One is for mini vacations, which are typically small weekend trips that we want to take within a few weeks or even days notice. We LOVE having the freedom to rent and air bnb at a moments notice and get away. The other is for our three cats, mainly for vet trips and other more expensive costs. We think it’s really important to have that in case of emergency, but even just to take them for any minor issue without feeling guilty for “wasting” money at the vet.
How do you organize your sinking funds? Do you keep them all in the same savings account and then just have dedicated amounts you’ve written down for each sinking fund? Also, could you do a breakdown of all your sinking funds and how you organized your notebook?
I believe she has a video on it. Maybe check the 2020 financial planning video on either January or February. It’s hard to pinpoint the exact video, but she covered it for sure
My first sinking fund was for the IRS! Do your taxes early so you know how much you have to save every payday, the earlier you know your total (if you have to pay in), the smaller your payments will be.
I started my sinking funds in March. My car insurance was due so with tax refund and stimulus check I paid the six month premium. Started saving monthly to pay in September. I also set up motor home insurance and tags.
Im really glad i found your channel. I looked up GUA SHA videos and. Yours was the one that called me so i clicked.....oddly enough, ive been on a debt crushing journey these past few months and have been trying to figure out how to budget with having a fluctuating income. The law of attraction blows me away every time. Ive now subscribed. Watched a handful of your videos. Taken notes etc. I’m wondering if you have a video on how to do your handwritten bullet journaling for finances. I will look to see, but if not I really hope you make one! Thanks for all the knowledge and advice. I really think it’s going to be a game changer for me.
I love sinking funds. I have one for annual bills (HOA, AAA, car registration), gifts, vacations, car maintenance and entertainment. I love BBVA for my accounts. I also set up accounts for groceries and gas each month. I got a credit card with them and payoff the card from each account. Future sinking funds: home improvements.
so that's what they're called! okay yeah i have them for : emergency flights/holidays, aesthetic tx ie. botox, professional exams, my mum staying with me so more money to cover bills, and theres' of course emergency fund + surprises fund
Every line item in my budget that is not a fixed expense, I consider a sinking fund even if I am not saving for anything specific in that category. Basically the balance is rolling for each line item. This provides a cushion for unexpected spending, motivation to save, and a way to treat myself from time to time. It feels like giving yourself permission to spend and I never feel I lack the funds for anything.
My sinking funds are: kids, cars (taxes and insurence), christmas/ gifts. I also have a small and a ”large” emergency fund and dedicated savings for big one-time expences like installing high speed internet. I also like to have a sinking fund for travel, but that’s not necessary at this time...
I didn't necessarily realize "sinking fund" was the term to use, but you learn something new every day! I have two friends getting married this year (I am in both weddings) so I started a sinking fund for that since it can be relatively expensive to be in a wedding. I also have one for travel (long-distance relationship...hopefully I will be able to use that soon!), and also a moving sinking fund (moving closer to my partner who is in a different country). I am curious if you keep all of these funds in different accounts and if it is all with the same bank if they are opened as savings accounts? Could this subject potentially be an upcoming video? I love following you and I love your attitude! Always so positive. I have begun my debt-free journey and will be working my tail off at it! Thank you for your videos (:
There's nothing wrong with creating separate accounts if it helps you track money and reach your goals. I have five different accounts with the same bank because my bank lets me have up to 10 accounts for free. Some are high savings if I don't plan on taking the money out (emergency fund) and others are just checking accounts for sinking funds as the money will get used..
Also, check with your current bank/credit union. I have a checking account where part of my direct deposit comes in, but also have 4 savings account with same bank (labeled for the sinking fund). Just transfer money into appropriate account. Some people have one savings account, but track how much belongs in each sinking fund on a spreadsheet or paper. Pick which is easier for you to handle and get comfortable.
@@melaniesmith1928 Thank you so much! It is always helpful to get other people's opinions/what works for them to see what will be best for me...very helpful!
@@francescaeve8776 Thank you! This is very helpful! I will be speaking to my bank this week to try and open up savings accounts/see what they offer at my current bank
Did you ever get to save $ on your rental payment? So happy for you, Aja. I’ve seen your entire journey and your smiles are so genuine. Now I need to stop being too miserable because I don’t share the same success with my student loans. 🥺
So I was planning to pay my student loans off by December but I got laid off in April then got a new job in July. Thankfully I’ve got 6 months of emergency funds saved and started what I guess is a sinking fund for my student loans. I just don’t know how smart is it to pay off those loans in dec when the sinking fund is fully funded even if I have 6 months of savings since we are living in crazy times. My current company is doing well but you never know.
*Honestly right now is not the time to payoff debt, you should be paying the minimum monthly payment. Use your extra money to grow your emergency fund. Specially because I think they're going to make student loans 0% interest until December 2021.*
Amazing video!! The amounts you are mentionning are so high compared to France (in term of revenues and spending) but retirement, unemployment insurance, health insurance and taxes are handled by the government so I guess it makes sense I get less at the end of the month. I've always had sinking funds and I used one to pay my apt Taxe and I have antoher one for travel (which is growing thanks to covid) but never thought about doing one for Christmas or birthday and honestly it's a great idea!!
Ma’am where is the top from?? Btw Aja I love your videos - your commitment to paying off your loans helped me pay off ~a third of my debt in 18 months and buy my first home (which I used a sinking fund to save for for about a year)! Love you!
My bank offers additional sub-accounts for sinking funds and this video has shown me how much I underestimate them :) I have one setup for additional payment of my car credit and another one for my future child’s nursery items (even though I’m not even pregnant right now 😂). I’m already tempted to do another funds since I loooooove this kind of effortless savings!
Love sinking funds! I have one for tuition, car registration and license renewal, Christmas gifts and a new one to pay for an accountant next tax season! Side note: is that normal USA insurance rates?! I’m in Quebec Canada and pay $58 per month (also got 20% back for a few months because of covid)
I love that the Empower's auto save will hold if it sees your account doesn't have the money to pull from! That's the biggest reason I'm too scared to set up auto save right now with a zero-based budget.
I've had an emergency and a wedding sinking fund for a couple of months, but I will be adding a couple more like Black Friday sales for a new laptop and a tattoo :)
Could you do a video (another) of what your first practical steps were when you started the debt journey in 2016. Ive paid off my debt- in part thanks to you Aja 🙏❤ but I definitely need help with creating extra income/side hustles
That’s crazy that no other place can match Mercury Insurance. My boyfriend had Mercury and he was being charged $200 a month for his car but he switched to mines, and the coverage is the same for only $91. I only pay $1080 a year for my car insurance and it’s full coverage.
I did love the credit we got from the car insurance. I just looked to see how much I owed. My mom is on my plan and she pays her part. Maybe I will pay my part and just have her part left.
I used to call Sinking Funds Yearly Expenses it wasn't until recently that I knew they had an official name LOL . I have some serious ones and then I have some fun ones. I created one for a fun holiday tour to do around christmas time :)
I discovered your channel about a month ago and you've really inspired me! I didn't even know about sinking funds before. 🙈 Do you do a balance of this while doing the debt snowball precovid? Also you make finances way more fun!
I'm not sure I fully understand your question but yes, you're able to build your sinking fund while paying off any debt. If you have any extra money left over, you can add it to your sinking fund/debt/savings fund (whatever your priority is) OR you can add your sinking fund into your budget.
I had to pull from my emergency fund recently and I feel discouraged. It's like I'm back to square one and not secure at all anymore. I forgot how stressful being in this place is.
I know the feeling. The good news is that you didn't put yourself in debt to cover your emergency though. That's HUGE. :) Be gentle with yourself, you're on your way. Baby steps 💗
@@AjaDang thank you for reminding me of that! It did feel really good to have the money there when I needed it. I'll just have to work at getting that feeling of being secure back. Please keep releasing videos of your journey because it's motivating 😊
@@alicedotkay I completely lost sight of the concept of baby steps. I fell into old patterns and saw only the negative side. Thank you for reminding me to be gentle with myself. I am very happy I didn't have to go into debt and I had an emergency fund to begin with. Next is to rebuild what I used, and then some. I love the community Aja has grown and appreciate your support!!! ☺
@@chelseafleming2422 I'm so glad for this community too! I also am still struggling with going back into bad habits, even now in baby Step 3. I definitely see a big difference compared to a couple of years ago, so I try to celebrate the little moments:) We gotta remember it's marathon, not a sprint! Hang in there, I promise it gets easier:) You got this!
Another killer video. Thank you for bringing up interest saving's account. Have you looked into Marcus by Goldman Sachs? I think their interest rate is .8 or so, but I don't think they provide a card to use like yours does. I have it, and it's been a game changer even with my small amount of money.
