Day 23/75
If there’s one thing I stand by it’s that Sinking Funds are the best tool for reaching your financial goals… they reduce the cognitive load and help you make purchases guilt free! So today I want you to pick a sinking fund category and start saving. Here’s how:
1️⃣pick a category you want to save for! Sinking funds are for planned spending that might not happen every month. Clothing, property tax, hobbies/memberships, are all examples.
✨This step will be easy for anyone who has my Budget Dashboard (link in bio💸) because there is a section dedicated to planning and tracking your sinking funds.
2️⃣ask yourself: how much money will I need to save and how much time do I have? Take the amount and divide it by the amount of months you have to save… and that’s the number you need to put aside each month.
It’s that easy! I love using @wealthsimple for my sinking funds because they have 1.75% interest on their cash accounts, you get 1% back on your spending AND there’s no minimum balance, monthly fees or transaction fees. Here’s my referral code so you can get $25 just for funding your account with your first $25!👇
wealthsimple.com/invite/W4T7ZR
I can’t wait to hear about your sinking fund categories! Tell me in the comments💬
My favourite ones are clothing, travel, and hobbies. The best part of having sinking funds is that I don’t feel bad for spending because I know that’s what the money is there for! I’m being intentional.
#budgeting #moneymindset #financialfreedom #financialliteracy #sinkingfunds
If you’re new to sinking funds, start by thinking about your upcoming planned expenses that don’t occur monthly but still require saving. For example, I regularly set aside money for clothing hauls, travel, and memberships. Knowing exactly how much and when you need the money makes it easier to budget without stress. One tip I’ve found helpful is using budgeting tools that integrate sinking funds seamlessly—like the Budget Dashboard I use, which lets you track everything in one place. Plus, choosing the right savings account matters; I prefer one with good interest and no fees, such as Wealthsimple’s cash accounts which also give cashback on spending. The key is consistency: divide the total amount needed by the months until the expense, then save that portion monthly. This prevents last-minute scrambles and keeps me excited about spending because it’s all intentional. Sharing your sinking fund categories with a community or friends can also motivate you to stick with your goals. Overall, sinking funds reduce financial anxiety, making budgeting practical and even fun. It’s freedom knowing your money is working for you and some guilt-free shopping treats are already waiting!