3 Easy Hacks to Building a Sinking Fund from Zero

[@dorisgrainger9692]

I think it is FABULOUS that you made your children do the budget thing in order to graduate. EVERY parent needs to teach their children that. SO SO IMPORTANT!!!!!!

[@greeneyedredhead61]

100% agree

[@UndertheMedian]

Our grown sons say that it really impacted them. They are both really good with money.

[@michelleraney3577]

The problem is, most parents don't know how to budget their money.

[@greeneyedredhead61]

@@michelleraney3577 they were the credit card generation....

[@ellefson1]

Came to say the same thing. I wish all schools taught budgeting. It's a basic life skill. Also, I love the toaster!!! I appreciate you two sharing your history.

[@sallybedwell1354]

I have a work travel expense sinking fund. This allows me to travel for work without dipping into my budget to float me until reimbursement happens. I also have car maintenance, house projects funds

[@msanchagrin]

An image for me of sinking funds is a colorful music equalizer!

[@kornelia635]

I am officially adopting you as my financial advisers/ parents. I have been hanging out with you for nearly a month now and thanks to you guys I have already saved £250 on food shopping only. Keep up a good job and keep posting. 💖

[@sugarloaf10]

Y’all are such a dynamic couple and I am so glad I found your channel!

[@UndertheMedian]

Thanks, Rachel. We are so happy to have you as part of the Under the Median family.

[@dreamofskye7400]

Now I get it. It’s a provisional fund. That’s what it’s called in my budget: Provisions. It gives so much peace of mind. Every time you need money, the funds are just there in your account almost as if by magic.. I remember years ago when we still didn’t have a sinking fund. Every time the bills and expenses would happen and we would be panicking and feeling depressed and demoralised. I never want to go back there again. I am truly thankful that we are now in a position to be able to have a sinking fund. My heart goes out to those who are working hard and doing there best and still are struggling financially. It isn’t always through fault of there own. Sometimes in life bad situations happen. That is why we need God and more compassion in this world.

[@bettywebb1171]

Love your channel! We have a small sinking fund category in our budget for benevolence. Everyone may not need, or want this, but when someone in our church (a large church) or family has a need, maybe due to job loss, medical expenses, etc., we have this money set aside to (anonymously) help someone.

[@katherinerichardson1767]

Bette Webb, a benevolence fund is a great idea. Thanks for sharing.

[@ellefson1]

What a lovely idea. Thank you for sharing that.

[@lizb4156]

Animal charities for me.

[@virginiawango3968]

Awesome idea, thank you.

[@sourdoughsavant22]

Love that I started a sinking fund for donations/giving as well! My goal is to give monthly but I tend to forget, but with the sinking fund I know it is set aside and then I can play catchup

[@nicolecorry2418]

We have a pet fund! I recently took my dog & cat to their annual check up and vaccinations. It was about $700! So, now we decided to start putting away $$$ each much to "soften the blow".

[@UndertheMedian]

Our dog, Shelby, always had her own sinking fund in the budget. As I recall, we set aside $50 a month for her care. Those annual vet bills can be really costly.

[@almostthere2884]

You should look into getting pet insurance. That way you would be covered for things like check ups and medication, but most importantly if they ever needed extended care, had a disease, or needed surgery, you'd pay a fraction of the cost. Google for your area.

[@paulcarlachapman628]

Years ago we opened a credit union account that we use for emergencies and for each year's taxes and insurance. The taxes, etc. are due here in November (right before Christmas) and always deplete this fund of several thousand dollars. During the next year we gradually replace that money and always try to build it a bit higher for the coming year's expenses. Once we used credit card funds to buy a badly needed used car, and immediately set about replacing them. Our credit union account is typically used only for these things and emergencies. You can't do without air conditioning in this hot, humid climate. This fund has been a life-saver many times.

[@terristewart6119]

An additional category I have is for continuing education, yearly certification fees, etc related to my job. I also have a category for yearly fees: Amazon Prime, computer security, Costco, etc. I sure wish I had learned to do this in my younger years! But better late than never!

[@kakelinga]

With every video you put out I learn something new. I look forward to your two videos each week. At 57 I am still learning how to handle our finances and how I can do a better job.

[@Chimonger1]

Never too late to learn!! We’re in our 70s. Much of what they say, we’ve been doing…but still have learned somethings. There are also a few things they didn’t mention, that I posted in comments. Everyone’s journey is different. Keep at it!!

[@Chimonger1]

Had never heard that term before….sinking funds. Nor “banked expenses” either. Turns out, most of your pointers, we do..at least some or all. One thing you did NOT say, is, HOW/WHERE do you store your sinking funds?? Envelopes in a drawer? In mattress? In separate savings accounts?…Or..? We’ve always had to scrimp. Our sinking fund, has always been more general. It started by putting leftover change from shopping, into #1 container in drawer. When the loose change amount in that reached about $500, I consolidated it into “less likely to spend” bigger denominations, like &100 bills, & put it into #2 container, hidden deeper into a drawer. When #2 held $1000, I moved it to a savings account…less likely to draw from, & big enuf to show interest adding. Those revolving containers just kept building, unless there was an expense needing paid…that #2 container, was what paid for our 1st apartment-size washer & drier…not our checking, not a credit card. When the savings acct. got a couple thousand in it, I put it into easily reached, easier to liquidate, low-interest, Govt T-bonds…the kind that had no limit on accruing interest. I think there might still be a few still uncashed…..those were what constituted a “life insurance policy” if something happened to one of us, because, we were both working multiple jobs, raising a special-needs kid & one troubled teen, as well as well as taking care of house, home-schooling one, & helping out a parent who was living poorly. Kids shoes?…the #1 container…& took kid to Kmart, to pick shoes from their several $10 sale table. One time, our kid scored 2 pairs, for a little over the $10 budget..so I bot them. Another time, at a discount clothing place, our kid desperately coveted a pair of Jordache jeans…no way! Kids grow too fast to afford name brands!…but, I told her, IF she could find a pair cheap, on the giant double racks there, I’d get them….I never saw a kid so laser-focused on a treasure-hunt, ever! …And…she found a pair quadruple-marked down to $8. I told her, if she could find another like it, I’d get both for her…man-o-man! ..She was ON IT!…but unable to find another. But she was exhultant for that pair! Car repairs? Usually from #2 container..except for the one year, ALL our old vehicles (an LTD Ford, a Gremlin, a motorcycle, & our teen’s little pickup truck-we never bot new-too costly!)…but All needed clutch replacements. ==> Our running joke, for almost all our 53 years together, has been… ”How much is it gonna cost?🤔…”$200!”😉🤣. Seemed every expense was about $200, or in later decades, multiples of $200. It’s been a terrific blessing that my spouse was a mechanic, & could provide “free” labor! I was blessed to be able to learn all manner of skills that could generate some income, take care of family, & greatly reduce dependence on paying others to do stuff. My only regret, is that our 2 kids, though they did learn some things…& dad made sure that when they got into driving, they also had to learn how to do basic maintenance on vehicle, so in a pinch, could DIY, or at least avoid getting rooked too much by unscrupulous venders/contractors, etc. Could we have done better? Absolutely!! But considering that both of us came out of poverty by bootstrapping, & no one showed us the ropes, we’ve done amazingly well. Unfortunately, we were never able to buy a house, until we were in our late 60s. Fortunately, we bot 8 yrs ago, right before real estate did it’s first bloat, & now, the shutdown bloat…so, …IF…we had to, we could sell it, & use the Equity to pay for something smaller, but, it’d be cash paying it. Your talks are motivational! Might have to get going on selling stuff on the “free for sale or trade” sites locally…we have several nearby. Those can et better prices than a yard sale.

[@taniayoungson5614]

Just stumbled across your video. Interesting! To start my sinking funds last year I used our income tax refund. Now I put $745/month into 9 funds. My sinking funds include yard, oil changes, kids activities, clothing, gifts, school, memberships, medical/dental and haircuts. Seems to be working well. If I find that I've got too much in one fund I will occasionally move it to another fund that seems low. An example would be for kids activities. This year most activities were suspended due to the pandemic so I moved some money into the school fund to adjust for math tutoring that became necessary with remote learning. Thanks for the video.

[@momjd9985]

Love the way Larry mentioned something your other son contributed something also way to keep it fair that’s a good dad.

[@annmarieknapp9942]

Thankful for your channel! I have a set amount automatically transferred from our bill pay account to our "Freedom Account " which is what we call our sinking funds. That $ is spread over our categories and I track the deposits and spending for each category on paper. I can't believe how "Freeing" it is to be able to pay a large bill knowing that the money is there waiting! Over the years we've increased the amount automatically transferred and have added more categories. We need more categories and eventually we will. The only issue I have had is "robbing " from one category to pay for something. Then I know I need another category. It's never ending but has saved us soooooo much stress!

[@cindystudenc98]

Hi Hope and Larry! I’ve been following you for awhile but haven’t commented. I love your channel so much. I’m a 67 yr old widow and live alone but still am able to use a lot of your tips. I’m using sinking funds for Christmas, bi- annual insurance, pet emergency’s, and so much more. I’m grateful for all the tips that you pass on with so much joy!!!❤️🙏🦋

[@UndertheMedian]

Hi, Cindy. Thanks so much for saying, "Hi". Welcome to the Under the Median family. We are so happy to have you with us.

[@emsiesenvelopes]

Wow this video has actually given me some hope and shown me a path to having working sinking funds. It is daunting starting from zero but it's exciting to see how the sinking fund can eventually become fully funded. Thank you Hope and Larry.

[@melissanash6801]

Love this! So practical and having sinking fund categories is crucial to budgeting success. My advice is to have a sinking fund category for everything, yes everything, you spend money on in a month, or a year. HOA dues, season tickets to a theater company, monthly movie dates. All these things can suck the life out of your budget and kill your motivation to continue to try and save. If you can't create a sinking fund for it, it might be time to consider giving that item up for a time or for good. It at least makes you really think about how you are spending your money.

[@gladysbohle1741]

I have done this exact thing for years but didn't know it had a specific name. Thanks for teaching this to others.

[@meleenabradley3017]

Thank you 😊 having a brain injury I tend to forget stuff especially if I don't do it all the time so it's great to learn new ways and I make notes so I don't forget 😊

[@lynnettemurphy8243]

Meleena Bradley, Same here, I too have a brain injury. If I don't do somthing when I think of it, it's forgotten until somthing jogs my memory. I write reminders into the diary, then forget to check the diary. Or I don't remember I have a diary. At times I can be very organised and remember & do what's on list. Ah well, we've just got to do the best with what we've got. Take care and stay safe. 🤕🙏☘️🇮🇪

[@FrugalQueeninFrance]

We have sinking funds just like yours, we allow ourselves amounts for clothes, for example and put money aside every month. Great video.

[@PPMARTES]

Hello from Mexico, what if I want or I Have to purchase something the first month or in February when I have a little saved in some of my sinking funds? Thanks ;)

[@alisawoods4180]

Thank You So Much! I Am So Working On My BUDGET And 6 Months EMERGENCY Funds Right Now! Have A Happy Birthday To You Mr Larry!

[@Maililnajul]

We call ours “set asides” as in I set aside money for future expenses. We use Quicken and I basically write myself a check entry in the future. For example I just created a 6/25/2022 check to start funding next year’s house insurance. I adjust the check every month when we get our pensions. I have much the same categories or “future checks” as you do. I think this helps you visualize what you will owe and the running available balance in my checkbook register is the smaller amount after all set asides. Yes, I not only keep the quicken books but a regular, old fashioned, register. I listen to you guys not because I need help with my finances but because you are so pleasant in your presentation and as a collector, I love the treasures you show.

[@abidashah4943]

Hi love ❤ u live watching frugal family 👪 ajoy to watch budgetingvand sinking funds videos

[@greeneyedredhead61]

I was wondering...if you don't mind a couple of questions: 1. Hope, since you home school your boys, would you be allowed to home school other people's kids? Could be a source for extra cash. 2. Hope and Larry, when switching from S.A.D. standard American diet to vegan, did you just do it cold turkey or did you ease into it....and did you go threw any kind of withdraws? 3. You two are so good at this money and budgeting thing.... Did you learn this from your parents? The things you teach on your show are things I wished I had been taught, either in school or by my parents, but I was not. That is why I am almost 60 yrs old and often worry about my health and retirement. Thank you for all you do. And you are great parents, do not..NOT listen to anyone who says otherwise.

[@UndertheMedian]

Great questions, Terri. 1) I don't know if I'll take tutoring gigs after I'm done homeschooling my own sons. I have a lot of friends who have. But, right now, it would have to be the right situation for me to take on that responsibility. 2) In switching to a vegan diet, we were already transitioning to it when we saw the movie, "Forks Over Knives". After that, we gave up meat completely. It took a little while for us to get all the dairy out of our diet. That was much harder for us. 3) Larry's parents always kept expense books, but didn't really have a written budget. However, they were very good with their money. My family never talked about money, but never lived on a budget. Most of what we learned, we learned after we got married and found ourselves flat broke. It was a necessity for us.

[@greeneyedredhead61]

@@UndertheMedian thank you for answering so quickly. As far as meat and dairy go.... I could give up meat pretty easy but cheese and eggs are my greatest weakness. I'm over weight and I am not in tip top health so I have been looking into making some changes. But food really is my only joy. But my best friend...wonderful friend is a vegan and always encourages me to be one. GOD truly blessed me with her friendship. I happened to be visiting morro bay while I was recouping from a heart attack and I met her there...and as GOD would have it...she happened to live in the same town as me....and less than 1 mile from my house. I need and want to get healthy so she and I can go van camping. There are so many places to see.

[@rochellethundercloud346]

@@greeneyedredhead61 my husband and i had to change our diets because of my gallbladder.it was bursting with gallstones and rotting.slowly going sepsic .yes,it was removed,this fall marks 3 years.hubby has lost a lot of weight as a result.2 years ago,he was 280 pounds at about 5'10. Now,hes down to 225 pounds.

[@Julie-si3hi]

I always budgeted,but since watching you both I now track in a book and have sinking funds :)

[@taracat7141]

WE have always save this way for any bill/thing we may need to pay for.... didn't know it was called a sinking fund..... this money sits in our home loan to offset the interest on our loan so it works for us while we are saving 😀

[@kimacnz]

Hello, Good video, but am confused. What do you do if you don't have enough to fund an entire sinking fund? Do you just do one category (e.g.,$50/month for clothes etc..) and then add a category? I saw something like that in an earlier comment. I tried a sinking fund a few years ago, but I added everything up that I would have to do monthly. It came to about $2500!! So I just stopped. Your info may help me start again. Also, my huge complements for answering a comment EVERY TIME they asked about where you keep your funds. Sheesh folks, just read the 250 comments; about 150 are asking about where to keep funds!

[@deborah10ism]

Thanks so much for this great information I was trying to figure out how to get this going and nobody never explained it this way thanks again!😊

[@Walking_w_Jesus]

This was perfect, it popped up in my feed today after I bought envelopes today, made my sinking fonds categories but had noo idea how or when to "fill them" 🙌

[@jeffleinard4519]

Great encouragement guys! I had gotten away from budgeting and frugality in the last few years of my marriage and now that I am single again I want to work toward getting back to it. Your channel really helps. Thanks so much!!!

[@ellenfoster96]

Hi, Love your channel and your down to earth approach to saving and building wealth. I was so happy to watch this video because I have both single use sinking funds, and those unknown expenses that can pop up at any time, and multiple times. I was chastised by another you-tuber for joining sinking funds correctly - (Ha, ha!) All I know is that my 11 sinking funds have kept me away from using credit cards! My confusion with sinking funds is how to account for them when you use them. Each month I put away a certain amount in my sinking fund savings account. When I use an amount, I log that in as income gained. Should I then account to for the expense in that months list of my expenditures? Can you please do a video on how to record your sinking funds correctly in the monthly budget? I would be very appreciative!

[@jeng.5739]

I have a sinking fund for my cat 🐈 (and vet) and for my teeth 🦷. But now I m thinking of a sinkingfund for my mom she is old and alone and has not so much money and when the oven or Waschmaschine break I have to pay it soooo I guess I will start one for my mom 😅

[@maypasifiki9360]

The book category is a must for me too 😅

[@rachaelv1140]

Sinking funds have become such a game changer for me. I currently have insurance (life insurance, car insurance, umbrella insurance), home (home repairs that are not emergencies), General (misc expenses), vacation, car (saving up for a new to me car). I put a set amount in home, car, and insurance every month. I put what I can in general and vacation.

[@UndertheMedian]

We have a misc. category, too. But, honestly we seldom use it. It's not very often that we can't file an expense under a specific category in the budget. But, it's always been nice to have in case we need it.

[@fourdayhomestead2839]

Great instructions on a topic I've tried to grasp over the last few days. I have a "lodge cast iron" sinking fund. Unusual, but a necessity, seeing the price of the items I need to convert from other cookware.

[@marykappesser5145]

These are very helpful ideas. I have never thought of starting out with fully funded sinking funds, just building up to the $ amount goal. Unfortunately, my husband is not of the same mindset and sees the ATM budget as his preferred method. That is, withdraw cash from the ATM until they say you can't. We are on opposite sides of the budget spectrum.

[@christinecunningham8371]

Super helpful tips! I love the idea of dividing by 12 to get those sinking funds on a roll!

[@bridgetmcgrath3964]

I once heard "wisdom is the ability to cope" 👏

[@mksugerman1500]

This is practical advice with step by step instructions and I appreciate it a lot!

[@lorileedriedger520]

That’s brilliant to have your kids do the family budget!! Wow what a helpful life lesson. I will definitely be doing that in our home. Thank you!! Great video!! Helpful to see the rollover on the whiteboard!! Blessings.

[@roxyperson8328]

Homeschool sinking fund!

[@DeidresBudgetingJourney]

I never had sinking funds until last year, I just had a chequing and savings. I have money automatically deposit the day after payday into each particular fund. I am saving money for Christmas this way (I will do it again next year too), household expenses and vehicle expenses too. In doing this I do not worry about having to pay for an unexpected replace of something like a lamp I had to do last year after mine quit working (new bulbs didn't even help). Love all your great tips and real life examples. ❤ from Canada.

[@cynthiadies9055]

Thank you for sharing all your funds and how you handle them.

[@UndertheMedian]

You are very welcome. Our pleasure.

[@PurpleFlower84]

Great tips! For an emergency fund, do you suggest keeping so much cash on hand? We have most of our emergency fund in a high yield savings account but I do keep a small amount of cash at home in case something happens. But I don’t know if it’s too much or too little or if I shouldn’t do it at all 😅

[@hfortenberry]

This was very helpful! Thank you! I already have a few sinking funds but am always interested in budget ideas. My sinking funds that differ from yours are house fund to buy a lot so I can build a homestead on a few acres one day. Then I have a van life fund to save up to buy a Ram Promaster to build out into a camper van to be my retirement travel camper.

[@hollyhawk1492]

I just love you both! Thank you for sharing your knowledge and experience.

[@fredswartley9778]

Great video! Sinking funds are important and help you plan for larger expenses. I would like to start sinking funds, but so far I haven't had enough income to do it....I'm glad you teach your children how to keep a budget. My parents didn't teach me enough about finances. Had to learn on my own, the hard way.

[@UndertheMedian]

Experience is a hard teacher, indeed.

[@dianemedina5814]

Thank you. I love to hear what you guys say. Makes me feel like I'm not alone in having to budget and be careful with my money.

[@cynthiabunch5036]

Larry would be interested to add a sinking fund for dog or pet care: check ups, shots, neuter/spay, food, medicine, flea and other parasite prevention, collar, tags, (our county has an annual dog tax) , leash, bedding, etc. Add the cost of a possible new pet. Now that I mention it, I need a pet sinking fund! Thank you for all the wonderful learning videos. You have become part of my family.

[@UndertheMedian]

Cynthia, it is a joy to have you with us.

[@silviahernandez8949]

Wonderful information, thank you both

[@anonymouslyfrugal858]

Very informative video. Would yousay it would be better to allocate extra money to a sinking fund or to rather use it to pay extra on your debt to eventually be debt free and THEN start a sinking fund? Love you guys! 💜

[@cowgirljones35]

Happy Birthday Larry I know you are 29 again 😂🎂🍨

[@denasharpe2393]

What a wonderful celebration of a truly great life!! Each of you compliments the other and though you children have grown up a bit so l don't think you have to worry that they will outgrow their shoes anymore!! Helps with planning those ' sinking funds' that must be replenished every 12mos.!!!

[@UndertheMedian]

Cowgirl, for many years whenever my kids were asked, "How old is your mom?" They replied, "29". I must have been 29 for nearly 20 years. LOL!

[@UndertheMedian]

@@denasharpe2393 , you're right. Now, they buy their own shoes. LOL!

[@kgaldamezbruni]

Thank you for such a great lesson what sinking fund is. Now I know how to do it. Your channel is a treasure for me. Blessings.

[@MYlearning-f7l]

I never knew what a sinking fund meant. Thank you for the explanation and excellent tips.

[@isabeauvanderhaeghe8798]

I have a judo and arts fund. Just started living on my own and you are really helpful! Thank you so much

[@cdogvlog5557]

I've only just recently just started implementing a sinking fund system. I have decided to only have sinking funds for things that are over a certain value or things that can't be funded out of the weekly budget, so basically I have a flexible amount week to week to cover small things but I'm not implementing it yet until I get some funds funded. If you fund everything the way you are supposed to all your money will be gone to sinking funds.

[@HomewithCheryl]

I love this idea and I may have missed it but I didn’t hear where you keep the money for your sinking funds? Is it in a special savings account or does the money hang out in your checking account? Loving the videos!

[@UndertheMedian]

Great question. We keep them in one savings account and track them on paper. Except for the fund for replacing the car. That's a lot more money than the rest. So, we keep it in a separate account.

[@maypasifiki9360]

I just found your channel and everything is so well explained. Thank you. Yoi got yourself a new subscriber

[@brg2743]

Thanks fir the good information. I appreciate it.

[@Barb6106]

Just found you snd am impressed, inspired and encouraged! Thanks! I realize I need more info and tighter reigns! Will be checking out other videos .. And love you made your kids involved. Fantastic idea!❤️💥💥

[@UndertheMedian]

Welcome to the Under the Median family, Barb. We're happy to have you.

[@tannaphillips6840]

Y’all always have such great information!!! Ty!!

[@barbaracarbone4658]

Love that toaster. I noticed it right away. Good explanations on sinking funds and saving.

[@UndertheMedian]

Thanks, Barbara. It's one of our favorite pieces. It works, but we really don't use it.

[@jackieburnett6881]

You gave me a lot of food for thought!! Ty for sharing

[@casandras14]

Home/household repairs & auto maintenance/repairs are two sinking funds I have that were not listed

[@patmartin9727]

Great video, I have sinking funds but have always been a little unsure about what to do at the end of the year. I now have a clearer view of how to manage the funds long term. As the car replacement is the largest amount I need to save and the most vague date at which it may be needed that this would be the best fund to move any surplus money left at the end of the year into. At the moment any extra left over in the grocery fund is used to fill up the pantry and the freezer but most of the other sinking funds have a years money in them so when I close the 2022 budget at the end of December I will use this method to top up the car replacement fund which is way below the total amount required should I need to replace my present car.

[@sandybee1767]

What I'd like to know is how you keep all this strait. How do you deposit into each of these funds and keep your other money separate. Do you have 20 bank accounts? Do you do automatic deposits into each one? Are they envelopes under the mattress?

[@UndertheMedian]

We keep everything except the car replacement fun in the same account and track them individually on paper. The car replacement fund is quite a bit more than the other funds. So, we like to have it in a separate account.

[@abidashah4943]

Love your sinking funds method extra money envelope system 👏 lov.u guys..bless u and 👪 👩‍👧‍👧 👨‍👩‍👧‍👦 with joy peace ✌ happyness always love u ❤ bless u and family 👪 ❤ 💖 with joy 😊 🎉🎉🎉❤❤❤❤❤

[@doublea6252]

This was great! We have 23 sinking funds!😂 I am amazed at how it creates less stress and helps me to enjoy the spending that comes up! We mostly do the roll over method! The list seems to keep growing for our family of 9!😂 And I just realized we will need to start a Wedding sinking fund for our kids before too long!!😜😂 Here are ours to help others get started: Emergency Savings, Our Family birthdays/Mothers Day and Fathers Day, Christmas, Car Tabs, Vehicle Maint., Vacay, Dog Vet/Meds, Extended Family bday gifts/ Mom Day and Dad Day, Easter, 4th of July, HOA, Gifts for Friends, Anniversary, Homeschool Curr., School Supplies, Thanksgiving, Labor Day, Valentine's, Tax Return, Amazon Prime, Cell phone (we pay yearly), Dental, Homeschool testing. We like to have celebrations!🎉😁😍

[@denasharpe2393]

Wow!!!

[@UndertheMedian]

Tarena, you definitely beat me with your 23 sinking funds. LOL! You did remind me that we will have to add two more sinking funds for next year: one son is graduating and we will have expenses for the party and graduation fees. And another fund for a coming of age ceremony. Our youngest son is turning 14 and we always do a big coming-of-age ceremony and party for the boys when they turn 14. I think it's interesting that you pay your cell phone bill regularly. Do you get a discount for doing it that way? Just curious. I have a month-to-month contract.

[@doublea6252]

@@UndertheMedian We started with Mint Mobile in Jan and they have an option to get a discount if you pay for a full year (I believe it was $218 with taxes per phone) so we bought that and now put money in the sinking fund for next year! What a fun year of celebrations you have ahead of you!!🎉🎉🎉

[@UndertheMedian]

@@doublea6252 , thanks. That's super helpful to know about the cell phone contract.

[@doublea6252]

@@UndertheMedian of course! (Ps...this is still Tarena, just logged into my sons account by accident!😂)

[@rebeccapitschmann5427]

HAPPY BIRTHDAY LARRY!!

[@judithbuchanan9566]

Larry & Hope, I love this video! Thank you so much for this! I learned a lot! Now I can hardly wait for the retirement video☺️.

[@abidashah4943]

Love u 💓 lov watching .frugal queen and king 🤴. Voice of a angle heart of gold ❤lov watching .Great tips and tricks for sinking funds .grugal envelope ✉ system sinking funds 😊👍 👌. Thanks for sharing your videos 📹 ❤❤❤❤lov.from 🇬🇧 💷 🇬🇧 💷

[@detert08]

How do you recommend getting started for insurance for example when you can’t afford to pay the initial year or 6 months up front? I pay extra because I can’t afford to pay more than an monthly installment.

[@UndertheMedian]

That is a great question. Talk to your insurance company and ask if they are charging a convenience fee for paying monthly. If they are, then ask for the quarterly, six month, and yearly rates. This is the easiest way to see exactly how much you will save by switching to paying less often. If you will save money by paying quarterly (every 3 months), save up the equivalent of two months of insurance - in addition to continuing to pay your monthly payments. Then you can switch to paying quarterly and immediately pay them your regular payment - plus the two months additional that you have saved. After you switch, be sure you are putting the monthly amount into a sinking fund which you don't touch and you are ready to pay them the entire amount every three months.

[@lomlloyl]

Happy Birthday Larry!

[@firegirl441fromga6]

Happy belated birthday Larry! My birthday is July 8 so only 1 day apart!

[@Trandans]

I usually watch your channel for inspiration and keep going on my frugal path - however, in this episode I learnt a lot about the sinking fund method that I haven't thought about earlier! (Sometimes things just take time to sink in.) 🙂 Love your show, you two are great advisers! ❤

[@JohnDoe-wb4iv]

My Central ac gave out last Monday right b4 the heatwave so I took a 10 gal bucket cut 2in holes around it's top got 4bags of ice marked them 1 to4 put 1 in bucket still n bag and 2 3 and4 went in freezer I bungee cord a fan on top of bucket blowing down into bucket the hot air from ceiling is drawn into bucket is chilled on ice and what emerged from bucket holes is cold air after a few hours the ice is half melted I replace it with no2 ice bag n put half filled bag of ice back in freezer hey it works a little more labor intensive but I'll save a fortune on electric as ac is an electric hog try It

[@minkademko2335]

Wow! That's a creative workaround. How effective is it? Have you taken room temperatures with and without? If someone is home all day to manage the icebag rotation, and it makes a reasonable difference in cooling a room, and you don't care what visitors think about your decor, go for it!

[@liisaelts7522]

I have book category :D There's plenty free books on Amazon, which I constantly keep eye on, but there are always books I will end up buying anyway, so I keep myself an allowance just for that and keep to it. If it didn't make it to the budget this month, it goes on the wish list. It's easier to admit to yourself there are things you like and can't talk yourself out of buying and making room for it in a budget than lying to yourself and sneaking them in through cutting money from other budgets.

[@tiffanyschneller8055]

Thanks for covering this!

[@glendagrosjean477]

Where do you put your sinking fund money? In an envelope? In an account? In separate accounts?

[@UndertheMedian]

We keep our sinking funds in a bank account and track how much we've spent from each fund on paper. However, if it's a smaller fund, then spending down cash works, too. Things like a clothing fund can work well in cash.

[@sp8400]

Great advice on sinking funds ~ I’m really looking forward to your video about retirement strategies😊

[@larryware1]

Yes, that one will be coming up in the near future. We will have our financial advisor on as a guest for that program.

[@UndertheMedian]

We're setting a video taping date with our financial planner for the program. He'll be excited that he got so many questions.

[@lindawer]

I have a sinking fund for my next car.I put a car payment's worth into the fund each month in hopes I'll have enough for a replacement car when needed.

[@mariastathopoulos744]

I'd find it difficult to have so many sinking funds. I'd just have a couple such as land rates/taxes and vacation. Otherwise an emergency fund to cover car and home repairs, dental and unemployment buffer for 6 months and longer. Each to their own. Your tips are easily tweaked to suit individual preferences.

[@rochellethundercloud346]

Happy birthday,Larry

[@UndertheMedian]

Thank you, Rochelle.

[@atur8012]

Extremely helpful and very useful. I've been looking for a clear explanation on this topic and this is the best one that I've seen so far! Thanks.

[@hazelfernando8713]

Where are you keeping these sinking funds? In checking accounts? Cash envelopes? I know interest rates are not great but I thought with regard to rolling over do you feel it’s better to keep it in an acct so it gains interest. Thanks for The great videos!

[@UndertheMedian]

We keep most of the funds in one high interest checking account. Except the car fund. We keep that separate, because it has so much more money in it than the other sinking funds.

[@joycegonzales4994]

Do you have all the funds in one account, and divide them up on paper, or separate savings accounts? Also, is this an actual money, or just a figure subtract Ed from your income?

[@UndertheMedian]

We have them all our sinking funds in one account and track them on paper. We generally don't take out the actual money from the account to spend it. But, if we ever had trouble tracking it or overspent it, we would use cash. I do have a friend who has several bank accounts and she puts money in each of her sinking funds separately each month. If you belong to a bank that will let you have a lot of sub-accounts for free, then it does work well to separate them.

[@JennTheFrugalMom]

Are Emergency Funds And 3 months of bills SAME envelope or No?

[@kathleensigmon1085]

This was so wonderful explained! Thanks for simplify it ! Love the both of you💜

[@mariannewesten3638]

This is so helpfull. Thank you for you're help

[@adoriabruce4960]

My Birthday is the same.

[@claudiazam-rod3362]

And hello from indiana

[@marisameans9859]

Lol got distracted a bit by Robbie Robot behind you

[@ceciliaruns72]

Great video! My favorite sinking fund is for the "Tulsa Tough!" It's an annual bike race weekend in Tulsa, Oklahoma that has Criterion races in the streets of the city and also some longer Grand Fondo races of 40, 60 and 100 miles! I rode the 40 mile ride last year and enjoyed watching the races in town with thousands of bike enthusiasts! I paid for a Hilton Hotel all with points and saved about $500 for gas, food, drinks and anything else needed for race day. I save $16 every 2 weeks and love to see this fund grow 🪴 because I am SOOO excited for next summers 60 mile event! 😁

[@3in1G]

Where do you put your sinking funds money? Is it in a bank account all together, separately or something else? By the way, thank you for your wonderful advise over the years. Much appreciation. 🌷

[@UndertheMedian]

We put them together in one account. Then, we track how much we use from each sinking fund on a spreadsheet every month.

[@3in1G]

@@UndertheMedian Thank you for that information. I really enjoy watching you and your family on KZbin. I will give sinking funds a shot this year! I have a savings account for many different uses but not in a budget, or do I have a real budget for that matter. 🤦🏻‍♀️Trying to make some positive changes this year. Take care, God bless! You guys are awesome!

[@virginiawango3968]

Oh my goodness, I needed this. I haven't watched it am bookmarking it for later. Sure to watch.

[@UndertheMedian]

Awesome, Virginia. We hope you find it super helpful.

[@virginiawango3968]

@@UndertheMedian came back and absolutely found it helpful. Thank you.

[@virginiawango3968]

@@UndertheMedian Happy Birthday Larry!

[@myrnamendez8292]

It was super helpful! Thank you!!

[@UndertheMedian]

You are very welcome. Our pleasure.

[@betsywilliams3666]

I love the idea of sinking funds, but I'm wondering do you just put the money into individual savings accounts at your local bank or online bank?

[@lizb4156]

Anywhere, even in your house.

[@UndertheMedian]

We put our sinking funds into one bank account and track them on paper. Except for our car replacement fund. It is separate, because it will be a chunk of money before we spend it. So, we just like having it separate.

[@abidashah4943]

Love u both frugal queen 👸 voice of a angle heart of gold. Love the roll over method started it really great rhankbyou for sharing lov u love watching 👀 qjoy qand pleasure to watch bless u and family with joy peace and happiness always 😊 ❤ 😀 ♥ 💜 ☺ 😊 ❤ 😀 ♥ 💜 ☺