The Difference Between Cash Envelopes and Sinking Funds

[@savvybudgetgirl]

How many envelopes do you use?

[@multimillionaire8763]

New subscriber! I have about 5-6 cash envelopes and currently about 13 sinking funds with more coming in 2023 and I'm debt free

[@savvybudgetgirl]

@@multimillionaire8763 Yay!! Welcome to the channel and congrats on being debt free!

[@wendysterlingcarr]

Finally someone that explains sinking funds where I understand it correctly!! Thank you!

[@savvybudgetgirl]

I’m so glad you found it helpful!

[@alicehall3135]

Just what I needed though some things do kind of cross over, but as long as the money is being set aside and is in place when I need it, it’s all good

[@savvybudgetgirl]

Hey! Thank you so much and I appreciate you!

[@sassyliving715]

It’s always interesting to hear how others label their envelopes for money. I only use the term “envelopes” but have them divided between “essential” (fixed and would include debt) and “non-essential” (everything else that isn’t necessary). I appreciate how you explained your envelopes names as they fit for you while still being able to follow you and get ideas for their own budget.

[@savvybudgetgirl]

Thank you! I’ve been getting ideas from other KZbinrs and just adjusting along the way. This is definitely a custom endeavor.

[@TNTINNC]

This is so so helpful. Thank you!

[@savvybudgetgirl]

You’re welcome!

[@belladonnabudgets7362]

I meant to comment on your place holder in the other video, I like how it turned out! :D I like how you categorize your binders :) Some examples of my binder categories are Home Essentials, Cat Mama, Sanity Saver (ie. my personal needs and wants), business, and Savings/Debt. The envelopes inside are a mix of revolving, which are often used, (ie. groceries, gas, cat food/litter) and sinking funds (ie. Christmas, continuing education, clothes, etc) and anything in between :D I like that you stress that one can adjust and change as per one's needs and situation. Great educational video! 🌸💮🌸

[@savvybudgetgirl]

Thanks so much for the comment! I found a video about making the placeholder and just went from there. Also, I got the idea of time-based binders from Jordan Budgets. I do like your system as well!