Home > Sinking Funds are Great!

Sinking Funds are Great!

December 28th, 2019 at 04:47 pm

I realized that I completely over budgeted/saved for my professional certification renewal. The fee to renew is $160 vs the $400+ I was thinking. $400 was the actual exam 🤦🏽‍♀️🙄.

I try to attend free events and listen to webinars for certification credits, but would really like to attend a convention. However; $2000+ for a convention is just not in my budget. My employer would reimburse me but my boss gives us such a hard time in that you feel so uncomfortable asking, it’s not worth the hassle.

Given that I over saved and also have the funds for my second renewal that’s due next year (I have two professional certifications), I’m going to change the saving amount from $25 to $10, per pay period. I’d still like to keep the cash on hand in case an event/training comes up that I’d like to attend and I’m not reimbursed by my employer. The good thing is, if I’m not reimbursed, I can use this has a business expense, since I have the consulting gig.

The goal was to hit $500 for the professional sinking fund and stop. Hopefully I’ll be reimbursed for the renewal and with the first pay check in January, I can stop outright, I’d hit my goal.

Meanwhile the extra $15 I’ll throw at the car sinking fund, since I’ve cleaned that baby out. But if I’m reimbursed the $169 and hit the $500 mark with the first paycheck in January, I can stop funding and add the extra $25 vs $15 to the car fund, to get that back up.

I’m so thankful that I found out about sinking funds. It actually, well for me, make saving so much easier. I prefer this method, rather than having one account for everything.

Though I didn’t meet my debt repayment goal for 2019, I’m still somewhat in the dumps about this, I’m also thankful for the sinking fund and the ability to pay cash for things, such as the legal bill, car repair, electrical repair etc. Who would have known I’d be back on my way to financial freedom.

3 Responses to “Sinking Funds are Great! ”

  1. latestart Says:

    Keep up the good work Amber. Just think if you did not have the sinking fund you would have had to add to your credit card debt to pay for your car repair.

  2. rob62521 Says:

    We have separate accounts for different things too. A few years ago when I met with our financial guy about making sure I could retire, I had to show everything we had I was afraid he was going to say it was silly to have all these separate accounts for Christmas, vacation, home, etc. Nope, he said he wished all his clients did this instead of giving him money to invest and then decide they want to buy a new car or fix up their house and then hit their investments and then complain they aren't making anything. You've done very well so keep up the good work. You didn't get in debt overnight so it may take awhile to get everything paid off, but you will.

    It is smart to have the money for certification renewal as well as the chance of getting to a conference. Nothing wrong about keeping up to date. I have debated on whether to renew my teaching license in case I want to sub. I honestly do not want to sub, but I have decided to do so in case I would need to.

  3. Amber Says:

    Thanks Rob

    Will re-certifying your license help with tutoring roles? Maybe that could be an option.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]