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!
Rate, Review, & Follow on Apple Podcasts
“I love Raya and City Girl Savings!” <– If that sounds like you, please consider rating and reviewing my show!
This helps me support more people — just like you — to make the best money moves as they make their way to their dream life.
Click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to let me know what you loved most about the episode!
Also, if you haven’t done so already, subscribe to the podcast. So many great episodes are on the way and, if you’re not subscribed, there’s a good chance you’ll miss out. Subscribe now!
Resources mentioned in this episode:
Online banks with high-yield savings accounts I recommend: Synchrony, Ally, American Express Bank
Need help with a budget? Let me create one for you!
Get your question answered on the podcast! Ask your question here.
Struggling with your finances? Request a call with me (and get a budget)!
Follow City Girl Savings on Instagram
Follow City Girl Savings on TikTok
