Sinking Funds

What they are and how they can help with those ‘unexpected’ expenses

Dreaming of the delicious food to come next week…

Thanksgiving is next week.

Sorry to be the one to drop that bomb if you haven’t been paying attention to the calendar!

And before you know it, December will be upon us and you know what that means. All the expenses that come with it.

Gifts
Decorations
Food
Family activities

To name a few.

This is one of those things that sneaks up on us. Every. Single. Year.

And somehow, we are never prepared.

What if you could change that? (Spoiler alert – you can!)

Enter what is known in the budgeting world as a sinking fund.

Perhaps a bit of a bizarre name but this is where you put away money each month for expenses that you know will come along eventually.

Holiday shopping
Car repairs
Vet bills
Annual insurance premiums
Annual subscriptions or memberships
Back to school costs

Imagine what next November could feel like if you start saving a little bit each month in preparation for your holiday shopping.

So, how do you get started?

There are a few ways, depending on your preferred method of budgeting, but as you probably know, my favorite budgeting software is YNAB. Check out this video on how easy it can be to start a sinking fund in YNAB!

Now, how great does that feel to know that you will have some money set aside for these expenses??

Need some help getting started with YNAB?
Let’s chat!

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