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Sinking Funds

October 5th, 2019 at 08:33 am

To renew my HR certification with SHRM I think it’s about $400, I started saving for it in June and I’m almost at my savings goal, with just under $75 to go. Hopefully my employer will reimburse me, fingers crossed. If this happens, I’ll continue to save and use the money towards the convention that I’ve always wanted to attend.

I have my sinking funds and was wondering when I should stop contributing to them. But after reviewing I don’t know. The home repair fund, I want at least $10k in that account. One, I know eventually the roof will need to be repaired, it’s well over ten years old as well as the AC. I also have some miscellaneous items that I’m holding out on as long as possible such as the refrigerator, cabinets and washer.

The car fund, I’ll just keep adding to that the $25 per pay period, my car is a 2002 Camry with well over 250,000 miles. She runs great, but I would like a nice cushion to be able to buy a car cash, once its time. Hopefully she’ll hang on for two more years at least. I think I need to bump the contributions amount to about $40 or $50.

Next there is the HOA, there’s really no cap, my HOA is $2,220 a year. I deposit $88.80 per pay check, when ever I hit a balance of $370 I make two payments. So I’ll never have a cushion in this account and don’t think I need to. Right now I’m paid through the end of the year. Once I get the new coupon book, in December what ever is in this account, I’ll pay as many months as possible.

Gifts I can cap at $250. I figure $25 per person for gifts such as birthdays and showers. When I’d initially set this up I only counted one graduation and a few birthdays but I got hit with baby showers and weddings etc. Right now I have one birthday coming up and that’s it for the rest of the year. Thank goodness.

Sorority I’m capping at $300. Though I’m no longer an active member, I do like to attend a few events and meet up with my line sisters from time to time. This is more of a social account.

And Christmas, well that’s an ongoing account. I have my three great nephews and mom to buy for. And my holiday game night. So this worked out pretty good.

Just typing this out, put things more into perspective. The home repair, EF and car repair/replacement funds are the most important accounts with much higher caps.

5 Responses to “Sinking Funds ”

  1. Smallsteps Says:

    Do you keep this money in different accounts or just running total of each category on a spreadsheet?
    I find this to be the most frustrating part of saving i have 3 accounts now and it is always shuffling what would come out of what fund if needed. i do not think i would want more to watch and juggle.

  2. Amber Says:

    I keep the accounts separate and set up direct deposit through my employer

  3. Jenn Says:

    I follow a blog of a guy who handles one of his funds - his EF - like this: he has a target for the amount but doesn't stop contributing when he hits the target. Instead his automatic contributions continue. Then at the end of the year, any amount over his EF target is thrown at his mortgage.

    What I like about his strategy is that he never lets himself stop contributing. Then it'd be tempting to get used to more spending money, and we all know an emergency will happen one day, and the fund will have to be replenished. I've never been able to implement his strategy because I've not come anywhere close to my EF target!

  4. Amber Says:

    @Jenn I like that idea. Rather than the mortgage I’d throw at the other debt

  5. creditcardfree Says:

    On some level a true sinking fund is always going to be depleted and need replenishing. Your gifts fund is a good example. You use it all up at some point in the year, so you keep contributing to it so you have what you need the next year. An emergency fund generally has a target amount, that you would need to replenish if you dip into it. I guess I see these as to two different types of savings, if that make sense.

    Jenn, that's neat to know about that man's emergency fund tactics.

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