sinking fund- great advice!
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| Mon, 01-25-2010 - 7:26pm |
thank you, thank you, thank you for the suggestions to look at starting a sinking fund for those once a year expenses that come up. i started to total up the random things that we have paid for throughout the past year and look to see what will be new and different this year, and HOLY COW!!!
from vehicle registrations, vet appts, christmas, and sil's destination wedding (that i had been completely overlooking) we are looking at about $3000 in additional expenses throughout the year that i would have been blindsided by! oof, that hurts!
but once the shock wore off i realized that we have the additional 'sinking' money already being put away through our childcare reimbursement acct. mentally i had already attached that entire amt to debt repayment, but i will need to use part of it for the sinking fund first and then put the remainder to debt.
on a side note- i had been ignoring sil's wedding but it is about 1/2 of the sinking fund by the time i added up all the costs. it's gotten way out of hand. knowing what i have set aside for it now, i think i have it covered, but any additional "plans" and i am going to go out of my mind!
anyway- thanks for the suggestion and the great dose of reality. i am SO GLAD that i took the time to really study it. hope you are all doing well!
-andi


I'm fairly new around here and just started my own sinking funds. Isn't it a brilliant idea?? I hope they work out very well for you and you have less financial stress this year! Good luck! :)
Glad they are working out for you. It is such a relief to have the money in place and not have to worry about things "popping" up. I know for myself, the sinking funds being in place (finally) have made a huge difference in my stress levels. I feel so much more even keel now!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -
For years and years and years, I made out a budget, only to totally blow it each month.
Norma
"Patience is the best remedy for every trouble"- Plautus
this is my first time working from a written budget. we would totally have blown it over and over again without taking a much closer look at these kinds of expenses. i know that other things might pop up from time to time, but it's nice to know that they won't be blowing our budget now!
makes for a happy andi, too. i am excited to see our plans in action. hurry up january, i want to try out my new budget!