7 Sinking Funds You Should Have

Sinking Fund: a fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset. In other words, a savings account for certain holidays or events you need money for.

Everyone’s “savings” accounts will be for their own unique mixture of life. These are some examples of what mine look like.

  1. Christmas/Holidays

I personally go crazy during holiday season. I LOVE buying gifts for my friends and loved ones. I enjoy making people happy. This is something that is important to me.

2. Important Birthdays/Events

Once again, I LOVE buying gifts for my friends and family so this is an important category for me.

3. Car Mainenance

I had a Toyota Corolla for 10 years. Towards the end of its time with me I was having to do a lot of maintenance on it and I didn’t have a sinking fund for this. It was coming straight out of my checks.

4. Home Repairs

I am currently in a situation where I am going to need to buy a new washer and dryer and my fence needs to be re-done. I have funds for these things because I set it aside when I receive income. I save for this goal out of every dollar I earn.

5. Pet Expenses

I have a 14 year old dog who has had 3 surgeries and needs medication daily. I have a 9 year old dog who also needs medication on a daily basis. I save up for this so I can cover it on a monthly basis.

6. Travel/Lifestyle

Me and my family travel a lot under normal circumstance. I plan each trip out and set a goal for how much I plan on saving for it. Each trip is separate.

7. Medical Costs

I have this as a savings account because you just really never know. I have small children who love to play outside and we have a jungle gym so I like to be prepared.

These are MY emergency funds. These make MY life easier. I love categories. You chose your priorities.

6 Ways to Be More Resourceful With Your Money

Once you have created your budget, if you haven’t already, you will be able to see exactly how much you need to pay your bills at the very least. Budgets are the road map to your goals. It will show you your areas of opportunity so you can then decided how to spend your money.

  1. Try Bartering

If bartering sounds scary to you because you have to negotiate then you should definitely try it! Bartering is coming back. Try it at the local farmers market, Facebook Marketplace or craft fairs near you during holiday season.

2. Negotiating For a Raise

Negotiating sometimes scares people too but I say put yourself out there and know your worth. Negotiating should be about you being more valuable than they assessed you previously.

3. DIY Projects

Go on Pinterest or YouTube and check out some Do It Yourself projects that you can do instead of purchasing something for a significant amount more.

4. Meal Prep

Buy groceries instead of eating out and plan out your weekly menu. If you don’t like meal prepping then cook every night. Make it fun with the kids or a bonding thing for you and your significant other. Make your coffee at home and take your lunch to work. Every dollar has a purpose and those areas of opportunity are only taking away what you could be saving towards your long term goals.

5. Use Cash Back Apps

One that comes to mind is Ebates.com. You get a percentage of your purchases back in cash. My mom loves that app and uses it everywhere. She’s an online shopper and she says there is usually a coupon for every place she wants to shop at. Might want to check it out.

6. Eat More Meatless Meals

Meat is at a ridiculous price right now because of the pandemic and I definitely try and substitute it if I can. I love bacon and chicken but I am not so much a red meat eater. Things I substitute my meat for are eggplant, beans, or mushrooms.

These are just a few ways I can recommend looking into. Living below your means doesn’t have to be gross. It can actually be quite satisfying getting a good deal.

And for more helpful tips and support, join my Taxes, Bookkeeping & Financial Wellness Group on Facebook! You can ask all your questions there.

Journaling About Your Spending

I like to use journal prompts when I do my journaling. I journal about everything. Money, marriage, parenting, work, dogs, unicorns, friends, events… you name it. The sky is the limit on what you can journal about because its all about YOU. This is a great tool to utilize because it helps alleviate stress and boost your mood. Journaling for me helps me get everything out on the table. It helps me focus on the main priorities and hold myself accountable.

We want to BE rich, not LOOK rich.

How Journaling Helps

Journaling helps you figure out your goals and how the puzzle pieces of your finances all fit together. Debt freedom is a huge goal. Paying off debt actually becomes something real and actionable when you break it down into bite-sized pieces. Journaling makes you more aware of your financial standing. It helps you get to know yourself a little better.

Your habits and triggers for your spending are the trends you want to track in order to figure out where you should be cutting back within your budget. Journaling gives you the opportunity for positive self talk. Raise your hand if you have ever bought something and then felt extreme guilt and then beat yourself up over it. I know I have.

Here are a few prompts I use when journaling about my finances…

  • Why do I like buying things?
  • Why don’t I feel satisfied with my bank account?
  • Am I happy with my finances?
  • Am I happy with my life?
  • What is really important to me?
  • What does my dream life look like?
  • What are my long term goals?
  • What are my short term goals?
  • Do I use my budget frequently?
  • How does money make me feel?
  • How do I make more money?
  • How do I make my money work for me?

If you are feeling overwhelmed with journaling about your finances and you realize you need more help then you thought… I’m always here for you.