Today I am finally setting up my Sinking Funds Tracker for 2021! This is the first time I ever do something like this and am sooo excited. I believe in budgeting in a way that makes sense to you and your family. You can adjust your budget accordingly and adapt to life changes.
So what is a Sinking Fund?
A Sinking Fund is something you want to save for. The most common categories are Christmas, Birthdays, Anniversary, Holidays, Vacation, and anything that is a big event that is expected to take place in your life.
How people calculate their savings is by using this formula:
(savings amount needed) divided by (# of months until event) = (monthly goal amount to save)
Many people keep these in cash envelopes, but I personally keep the larger ones in an online savings account. This is just a personal preference, so do whatever works best for you!
Watch here to see what Sinking Funds categories we are saving in the month of July!
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