Hello everyone
This past week has not be the best. I am still reworking my budget due to things I forgot. Mostly insurance and items related to my two teen girls. I did not know my oldest daughter would order her class ring this year. I thought they did the in 11th grade. She is a sophomore. Her deposit is due on Wed. My youngest daughter needs a new dress so I spent $50 yesterday for that. I am paying for all the insurance and girls expenses out of my budget. That leaves no money to pay extra on debit. I will just be able to make all payments. While I am feeling down and out, I now know how crucial sinking funds can be. I have a few questions:
1. What do you have sinking funds for? I need one for insurance, clothes, school stuff. What am I missing?
2. Where do you keep your sinking funds? A separate account?
Thanks for any advice. I am not giving up. I am determined to have one debit paid off by the end of the year. I am just getting a slow start.
Unexpected expenses
February 9th, 2014 at 03:03 pm
February 9th, 2014 at 03:15 pm 1391958910
Our escrow/sinking fund only includes Christmas, auto insurance and auto registrations. I have kept the funds separate, but right now they happen to be in our checking account. I keep track of the balance of those funds in a spreadsheet, so I don't spend that money.
February 9th, 2014 at 03:20 pm 1391959238
February 9th, 2014 at 03:32 pm 1391959954
February 9th, 2014 at 03:39 pm 1391960348
We save monthly for all of our insurances, car registration, medical and dental, school lunch, car repairs, etc. For miscellaneous, last year we spent on concerts, passports, replacing broken electronics, vet bills, smaller home repairs, and after-school activities. For anything we don't know, we just try to estimate. Larger expenses have to come out of more long-term savings. 2013 was kind of crazy. 2012 slush fund misc. was anniversary dinner, activities, anniversary gift for parents, kids birthday, emergency room, software. Just to show how different our spending is every year. 2012 was more "fun" stuff. 2013 was a lot more Murphy type spending. {This is basically where I put absolutely everything that is not a regular monthly bill}.
In addition to the fairly predictable (insurance bills), we set aside $750 per vehicle annually for maintenance, and about $200 per month for the misc. items I mentioned. Just keep tracking and adjusting until you figure out what works for you.
February 9th, 2014 at 04:32 pm 1391963542
February 9th, 2014 at 04:51 pm 1391964664
February 9th, 2014 at 04:57 pm 1391965053
Slush funds and sinking accounts really are for those expenses that pop up suddenly and without knowledge. And I think that after a year of tracking spnding no one should need those accounts because you should have everything identified. Keeping $1000 or so available for the true pop ups is one thing, not identifying potential expenses in your budget is another.
I save money every month for the yearly expenses: auto and home insurance, gym renewal, car registration, vacations, gifts and celebrations. That way there are no "pop ups" in my budget.
February 9th, 2014 at 05:03 pm 1391965391
I had a class ring my parents purchased for me, I think my Junior year. I did wear it, but later they also bought be an emerald ring for my birthday. I still have the emerald and love it, but the class ring was cashed in when gold was peaking. It just didn't have any sentimental value.
February 9th, 2014 at 05:07 pm 1391965651
in hope of being helpful...
DDs need to understand it's your goal to clear debt as quickly as possible and how much you need them to co operate with your plan. Does DD 1 really want a HSch class ring or is she just swept up in the promo? It's often an item that's appreciated for only a few months and left to languish in a box for the next dozen years. Is it her plan to go to college or university? would she wear her ring there? I suggest she put some 'skin in the game' and contribute half the cost by doing chores for pay or baby sitting etc. Can your half the cost be her Birthday gift, paid forward?
February 9th, 2014 at 08:07 pm 1391976450
It was completely reasonable for my mom to prioritize keeping a roof over our heads and food on the table over a class ring.
February 9th, 2014 at 10:21 pm 1391984509
My reasoning is in a true emergency I would clean out all savings accounts if I needed the cash anyway. Just like if I need an extra $100 to cover an annual bill I would get it from whatever account anyway. Maybe that isn't how others would do it. Maybe someday I might have multiple accounts if I have "plenty" of cash for it to make sense to me to do that.
February 10th, 2014 at 12:46 am 1391993187
February 10th, 2014 at 01:31 am 1391995904
February 10th, 2014 at 01:51 pm 1392040283
February 12th, 2014 at 05:50 pm 1392227447