I'm sure you've heard the term "sinking funds" before, and if you haven't, you'll definitely learn today!
Sinking funds are individual saving strategies for specific goals.
Whether you're saving for that goal in a bank account, investment account or a cash envelope, you're contributing to that goal's sinking fund.
Sinking funds can be a great way to save for goals, save for expenses that tend to pop up on you unexpectedly, or save for things (big or small) that you want to have money for in the future.
In this episode, I'm helping you get clear on leveraging sinking funds, which sinking funds you should have and how to budget for them.
Get ready to feel like a sinking fund pro!
Here's a glance at this episode:
[01:30] According to a CNBC study, Americans save less than 5% of their disposable income – the income that's left over after all their bills and responsibilities are covered.
[03:59] Want to save for your sinking funds in cash? The envelope system is the best way to go.
[08:56] I'm saving for a second home in Palm Springs in an investment account. I'm breaking down why I chose this type of account.
[11:20] Determining your sinking funds? I often ask my clients what expenses come up regularly that can be saved for in advance?
[15:23] Getting into a groove with sinking funds will take some trial and error. Give yourself grace and don't give up!
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This helps me support more people — just like you — to make the best money moves as they make their way to their dream life.
Resources mentioned in this episode:
Join the FREE 4-week CGS Summer Savings Challenge!
Online banks with high-yield savings accounts I recommend: Synchrony, Ally, American Express Bank
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