2010 Sinking Fund Challenge

**peanut** · 12-27-2009, 06:48 PM

Anyone interested in this? A sinking fund is for yearly or more than yearly expenses. Things like house renos, replacing appliances, house insurance, etc. Things that sink your budget if you haven't allowed for them in it.

We have a sinking fund sitting at about $7000 right now. But it's far too little. We need a new kitchen, new furniture, and in a few years, a new car (we only pay cash for cars). We seriously need to get to work on our sinking fund!

Anyone else in with me?

**Luckybustert** · 12-27-2009, 07:24 PM

Count me in! My sinking funds I'm working on in 2010 are:

Christmas fund
Deck construction/hot tub fund
Computer fund
Vacation fund

**mauimagic** · 12-27-2009, 07:27 PM

I need this for our semi annual insurance payments. Am not going to have this be an automatic deduction - really want to actively participate in being successful here!! Mahalo for setting this up. By 1/2/10 I'll know the numbers I will need!!

**JenMarie** · 12-27-2009, 08:45 PM

I'm in too... We have a savings account that is for emergencies and big purchases (such as our new roof a few months ago) We never let it go below a certain amount... Do you have a seperate bank account for the sinking fund?

**ladykemma2** · 12-27-2009, 08:50 PM

count me in too!

**tervsforme** · 12-27-2009, 11:38 PM

I'm in this. I have money automatically go into this account every pay. Right now it covers my real estate taxes, homeowners insurance and car insurance. I'd like to put a little more in there because I need to save for a new roof which I will need in a couple of years.

**mauimagic** · 12-28-2009, 12:51 AM

I am using a separate account that is very easy for me to make deposits - ergo - no excuses!! And by making it separate, it's uses are easily identifiable!!

**peanut** · 12-28-2009, 01:06 AM

Originally Posted by JenMarie

I'm in too... We have a savings account that is for emergencies and big purchases (such as our new roof a few months ago) We never let it go below a certain amount... Do you have a seperate bank account for the sinking fund?

Yes, we use a separate account. A long term savings account we can't draw from on a cheque. We have to transfer money to our chequing account to get at it. Means it's safer from serendipitous spending!

**mauimagic** · 12-28-2009, 03:09 AM

So tomorrow when I start reconciling 2009 finances, this is the first account that I am going to calculate. Am really excited to get this going!!

**peanut** · 12-28-2009, 09:09 AM

So for us...eventually we'll need...

$400/mth. for taxes and insurance

$15000 kitchen reno
$4000 entryway reno
$10000 new furniture (we'll probably buy secondhand, but good)
$15000 new-to-us car
$6000 trip to Denmark

All this has to be achieved in 4 years...sigh...that's $1041 into savings every month. Hmmm...could be tight. Might be cutting back in the area of the furniture and doing renos ourselves. We know we can save $1000 a month if we just do it.

That's $1441 into savings a month! Time to get serious!

**NikoSan999** · 12-28-2009, 09:42 AM

Originally Posted by peanut

So for us...eventually we'll need...

$400/mth. for taxes and insurance

$15000 kitchen reno
$4000 entryway reno
$10000 new furniture (we'll probably buy secondhand, but good)
$15000 new-to-us car
$6000 trip to Denmark

All this has to be achieved in 4 years...sigh...that's $1041 into savings every month. Hmmm...could be tight. Might be cutting back in the area of the furniture and doing renos ourselves. We know we can save $1000 a month if we just do it.

That's $1441 into savings a month! Time to get serious!

Wow!!! Serious goal. Wishing you all the luck especially in the next year just getting it fine tunes.
Anything you get accomplished tho will be that much less at the very end. Just have to keep plugging.

**ladykemma2** · 12-28-2009, 11:03 AM

i feel like julie powell in Julie/Julia.

The challenge: 5100 dollars in freedom account
The days: 365 days

let's begin.

**Ceashels** · 12-28-2009, 11:18 AM

Disney:
Home Repair:

Amounts to be determined after our next budget meeting.

These are the 2 that we would really like to focus on (Disney for the first half of the year and home repair for the second half). Most of our other funds are smaller items like water, car registration and life insurance that we know will get covered first.

I look forward to seeing these funds grow.

**nic4549** · 12-28-2009, 03:50 PM

I'm in. I have 2 sink accounts that I'm filling right now.

No work summer: $375/$2,000
Christmas 2010: $400/$1,000

I put in $100 a month for my no work summer fund and whatever we have left over at the end of the month. I'm also waiting on a rebate check for over $700 from a credit card that we over paid. I want both funded by May. Good luck everyone.

**JoJoBean8** · 12-28-2009, 05:14 PM

I don't have a sinking fund I have something I call my misc fund. The only real expenses that aren't monthly are oil changes, inspections, registration, and auto insurance. I don't really budget for them because they aren't that much money and our auto is twice yearly in Feb and Aug and Hubby gets an extra paycheck in Jan and July so that extra check pays it off in full. So our misc fund is more for if the tv breaks or microwave breaks. Not an emergency but if the tv breaks I would like to get a new one since we only have one to begin with. So would I still be able to do this challenge?