What are some sinking fund categories...

iVillage Member
Registered: 03-31-2010
What are some sinking fund categories...
12
Wed, 04-14-2010 - 7:24pm

...that might easily be overlooked?


Norma's post has really got me thinking that I need to make sure I have included everything I can think of in our budget.

Robyn CL- Debt Support Group


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iVillage Member
Registered: 10-28-2009
Wed, 04-14-2010 - 9:09pm

I am still tweaking my sinking fund categories, as I am somewhat new to the concept. But, what I have going into my SF is:

gifts, clothing, hair appts, dental/health meds/co-pays, annual insurance premiums(auto,life,home), annual memberships (AAA, my fave magazine,newspaper),auto maint. (oil changes, minor repairs), routine house maint., out of the ordinary entertainment(maybe concert tickets, but not something like netflix)

I hope this makes sense!

iVillage Member
Registered: 10-28-2006
Wed, 04-14-2010 - 9:43pm

Ok so how do you all find the money for the sinking funds? Is it apart from snowflakes? Is it what you'd normally save back in a month divided into the different categories? I am so dumb at the sinking fund thing. Help.


I currently have $30 a month going to a christmas club account, but that is as far as I've gotten.

iVillage Member
Registered: 03-15-2005
Wed, 04-14-2010 - 9:53pm

I have Christmas, Vacation, Car Insurance, House Insurance, Property Taxes, Car Repairs, AAA membership, Pool Membership, House Maintenance Acct, Kids Sports Fees, Clothing, and Kids School Fees/Back to School expenses.


I have all of these in my budget.

Jennifer


 


iVillage Member
Registered: 04-10-2003
Thu, 04-15-2010 - 8:31am

Dana, I pay my sinking funds like I pay bills. Currently I have $230 a paycheck that gets divied up in the following ways: $50 efund, $50 pets/vet expenses, $40 home maintenance, $30 Car maintenance, $25 gifts/christmas, $20 for clothes, haircuts, me and $15 for copays. Its automatic like any other bill so I have to account for it each payday.


Now, it took me A LONG TIME to get up to this point. I started with $25 a paycheck that just went into a general fund. As I got raises, promotions, maxed out on EI and CPP, I would put a little more in the funds. At the moment, they are not fully funded by any stretch BUT if something does come up, there is money there to cover it.


Now that I am moving into an older house AND making more money, I am going in increase my home maintenance fund to about $100 a pay check. I'll know the exact amount as soon as I get my first pay and know how much I am bring home!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 10-01-2008
Thu, 04-15-2010 - 8:41am

Each month these are included with all my drafts for household bills.

Savings - Efund $200
Extras/Emergencies $75
Christmas Club $100
Car/truck maintenance $30
Clothing/hair cuts $50
Dogs/Horses/Feed & meds $90
Gardening/Mower Maint/Home Maint $50
Medical/Dental $80

I need to beef up the home maint. and the car/truck. I'll need two tires before much longer.

Norma


"Patience is the best remedy for every trouble"- Plautus



Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 08-24-2007
Thu, 04-15-2010 - 9:05am

This is a great thread because I'm always curious about other people's sinking funds.

Kate


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iVillage Member
Registered: 08-24-2007
Thu, 04-15-2010 - 9:26am

Robyn,


Here's a list I compiled from everyone's responses :


E-Fund


Kate


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iVillage Member
Registered: 03-27-2005
Thu, 04-15-2010 - 9:46am

My sinking fund categories.


Cat vet


Dog Vet


Car registrations


Car inspections


Car insurance


Camp for my son


Copayments


Eye glass replacement


Clothing


Gifts


*Car repairs is under a separate category specific to the car.

iVillage Member
Registered: 11-14-2008
Thu, 04-15-2010 - 11:45am

The advantage of having all your sinking funds in one account is the flexibility that comes with it.

I agree with the basic principle of adding up your categories and dividing by 12(per month) or 24 or 26(per pay cheq) and making that deposit(transfer) once a month. I tend to get lazy and do one a month for my property taxes and just throw whatever is extra into savings every month or two when there appears to be too much in my chequing account.

The flexibility comes in when you are just starting where you have been putting $50 a month in for pet expenses and $50 for clothing expenses but something happens with the dog for $100. Well you can use that for dog and get clothes later. Or the same goes for vehicle maintenance. It will all work out eventually. You will need the money for every category eventually, it doesn't happen often(although it can) that the dog needs medicine, you need tires on the car, you get a hair cut, and buy new clothes all in one month. See where I am going with this? Just keep at it and in a few years you will feel really secure. And don't skimp on categories, especially car maintenance. That one can build and build, but before you know it, you will need major cash for the vehicle, and if all else fails you will have a heck of a down payment to buy a new one if so desired.

I track my sinking funds on excel and have it all in one savings acccount. I tend to do it on a yearly basis based on when the property taxes are due. It really dips when I pay them but it is never at zero in there from all the other categories I contribute to.

In the end, you have to do what works for you.







iVillage Member
Registered: 08-24-2007
Thu, 04-15-2010 - 5:26pm

Karen, that's really interesting.

Kate


empty purse

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