[Sara Noel]

I couldn't resist.
Look, it's a do-over. Let's try this again.

 

[Greebo]

You forgot the question mark, which was meant to say, "Should we have one?"

I think we've agreed that we should, and that the challenge should be for increases to the EF only.

So do we agree that sinking funds allocated for specific items are not qualified as EF funds?

 

[McD]

It's like deja vu.

I'm in--only contributions to the actual EF is fine with me.

 

[Sara Noel]

I'll let majority decide on that but imo earmarked funds funneled into savings for a specific purpose (ie. holidays, vacations, insurance, maintenance, etc) is different than an EF.

Like my savings to replace my tv, improve our bonus room and upgrade my old furnace and central air are not my EF savings. Even though the furnace dying would be an emergency, I'm saving now to avoid it being a true emergency and am not using EF money toward it. My EF is more for survival planning (ie. ours saved our butts when Gabe was unemployed) than repairs or replacements even if they come as a surprise.
But I realize this is going to be different for everyone depending on where they are financially or their own perspective. A car needing repair can be an emergency for someone and not for someone else. However, I think repairs should be budgeted in and are separate from an EF.

But for some folks, I think building ANY savings is beneficial, so wouldn't want to discourage anyone by making it more complicated than it needs to be.

ETA, to me EF and sinking fund should be separate, but if you're disciplined, you could simply categorize and create something in I don't know Quicken or whatever that allocates amounts vs. having actual separate accounts.

So my opinion is separate. We can have a sinking fund challenge, too. Get people to start budgeting in expenses that are likely or definitely going to happen. And leave an EF the way it's designed to be.

 

[Lady_V]

I need to build the EF too... if this happens count me in.

 

[Ceashels]

What if we had the overall savings challenge:

EF: X amount added toward goal Y

Sinking funds: X amount added toward goal Y

car:
vacation:
life insurance:
water bill:
pets:
hdtv:
computer:
item of choice:

each member could post a template of what they wish to save toward and then copy and paste with updated numbers by pay period or monthly.

 

[Sara Noel]

I think that's a good way of doing it.

 

[Greebo]

Oh good - that means less work for me.

 

[frugalwarrior2]

Thank you Sara.
I would like to participate. I have reevaluated the BEF up to $1500. instead of $1000. I HOPE to get past this and start funneling cash into EF. I can't subscribe to pay all debt anymore in this economy (and w/ 2 teens). I feel unprotected. I vote to keep this simple but not so simple that it's boring.
Would others want to say what throws them off? I often feel like "Chutes and Ladders". I am going along fine and bam I'm sent back to the beginning. So i think a scheduled deduction seperate acct. will be right for me. Something I can't click to transfer.lol.

 

[frugalwarrior2]

Oh sorry if my post is out of whack. Had to stop in the middle of the post to have a quick preholiday marital fight over cable boxes.
I like the template idea because I never seem to get to that save for budget line because I am always stuck on the pay extra to bills idea which leads to tail chasing.

 

[mauimagic]

FW2 - that's what works for me.

Have never really had a sinking fund for specific purposes - and I love that idea. Mahalo Ceashells - that looks like just what I need and want to do!!

 

[frugalwarrior2]

MM-thanks. It will be very helpful to see how others have worked it out. I definately want to hone my systems. My basic budget is almost automatic but savings,retirement and investing i need to take a class or course or something???

 

[qsaver704]

ok, I like the idea of categories of savings. I didn't know to use the term "sinking fund". We have lots of categoires. I guess my will be set up sort of like this:

BEF: $1000-DONE
EF: 6 months expenses is at $0
tv replacement:0
car replacement:0
vacation:0
extra house payments:0
Christmas 2010:0

I don't have to report that many categories. Those are just some of the areas I would like to work on in 2010. I am good at following whatever rules are established.

 

[Maine Girl]

Now can i still participate since i do not have an emergency fund?

 

[frugalwarrior2]

Maine Girl- Why don't you use this thread to help you create one? Just put in what you can. I hope to surpass my $1000. when all is said and done but life happens - a lot.

 

[Greebo]

Now can i still participate since i do not have an emergency fund?

Are you planning to have one?

If not, why not? Do you think you won't ever have an emergency?

 

[Greebo]

I've been thinking about the idea of merging "build your EF" with "build your sinking funds" - and I don't think we should.

The Emergency Fund is something VERY DIFFERENT from a sinking fund in my view. I think it's significant enough that it should have it's own topic.

I'm not opposed to a Sinking Fund challenge as well - but those are a lot more personal and different for each - we have categories you may not have and vice versa. So I don't think they'll merge well with EFs for that reason as well.

Thoughts?

 

[Sara Noel]

I think they should be separate and people can join one or both (both being the ideal). But that's just my opinion. I want people to save, so it's all good really. It's just if someone hasn't created a sinking fund before, they should start one and it's easier to do it separate even though they can be done together with more categories. The problem arises when it appears like they have a lot in savings when much of it is supposed to go toward something specific and if someone isn't disciplined, they might be more likely to take that money out and spend it. And the more categories in a single account, the more complex or frustrating it can be, too. When it should be very simple. But then again, some people are hesitant to have multiple accounts. Those people can modify but really should have their own personal challenge, since we can't please everyone. LOL

Having it separate can make it easy for a person to say okay this account is for my short term planned expenses.

 

[nic4549]

I'm in for both. Need to get a full BEF and I'm saving for a couple of different things.

 

[qsaver704]

I am good with there being two challenges. Who will lead the shrinking fund challenge?