EP. 27 What A Sinking Fund Is + Why You Need One

No one likes when an unexpected expense pops up and ruins their otherwise well-organized budget! So what do you do? Grab a credit card or dip into your emergency fund? NOPE…that’s what a Sinking Fund is for! Think of it as a big “Miscellaneous Fund” for things like Annual Bills, Holidays, and Home + Vehicle Repairs. I’m sharing what exactly a Sinking Fund is and how to set one up so these expenses won’t sneak up on you anymore.

In this episode, I share about:

• What exactly a Sinking Fund is

• How to budget for miscellaneous expenses that are unexpected but necessary

• Why a Sinking Fund should be in addition to an Emergency Fund

• What type of expenses belong in a Sinking Fund

• Example of Sinking Fund categories (see examples below)

• How much money and how often to contribute to your Sinking Fund

• Where to keep your Sinking Fund (Savings, Debit, or Cash)

• Where a Sinking Fund Belongs on your Budgeting Worksheets

• How to perfect your Sinking Funds over the years

• The main goal behind Sinking Funds

Examples of Sinking Fund Categories:

• Large purchases

  • New Car

  • Weekend Events/Vacation

  • New computer or new phone

• Holidays

  • Christmas, Halloween, Easter, Anniversaries, etc

  • Family, Friends, or Co-workers’ Birthdays

  • Wedding, Baby Showers, etc

• Overlooked Expenses or Unexpected Events

  • Irregular Bills (Quarterly or Annually)

  • Insurance

  • Taxes (Income, Property, etc)

  • Annual Registrations or Licenses (Could be vehicle or job related)

  • Clothes (We shop seasonally)

  • Pets

  • Health (doctor’s visits, medicine and prescriptions, new glasses or contacts, braces)

  • Kids (Activities, extracurriculars, field trips, school supplies)

• Maintenance + Repairs

  • Home (Maintenance and upkeep, HOA, property taxes, pest control, furniture replacement, and appliance repair)

  • Vehicle Maintenance (Maintenance and repairs, tires, oil change, car tag, toll fees)

Resources Mentioned:

• Podcast Home Page

• (A Sunny Side Up Life Podcast) EP. 03 How To Organize Your Bank Accounts

• (Full Budgeting Course) Your Sunny Money Method

• (Digital + Printable Budgeting Worksheets) Budgeting Starter Pack

• My Instagram

• My Facebook Community

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HEY I'M SAMI WOMACK

I'm the wife to my high school sweetheart, Daniel, + homeschooling momma to our 3 girls. I'm the Budgeting Coach + Motivational Speaker behind 
A Sunny Side Up Life.

My family used to be in $490k of debt + living paycheck-to-paycheck, but after we hit rock bottom everything changed for us!

Now that my family has become debt free + gained financial freedom, I want to help your family do the same! My passion is inspiring women to live abundant lives through budgeting, intentional living, and positive thinking.

I offer a jump start into budgeting with my free 8-day Declutter Your Budget Challenge + full budgeting experience with my course, Your Sunny Money Method.

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