Question

First of all, thanks for all the great posts and responses. Such an amazing community! I am just starting. I am struggling because I am not sure how to start sinking funds when they seem to be eaten up within the first couple months. For example: I pay once a year for my son’s TKD. Let’s say I only have $500 in the SF and the bill is $2000 and due this month. How do you get through that first year of building your SFs? Do you just fight through it or are there any tricks? Thanks in advance.  

Answer 1

With some of them, I just fight through it. And think, that’s $500 less that your putting on your credit card which is great! Start saving for next year’s cost though so you can get ahead start and save even more!  

Answer 2

I’m there too. I’m focusing on throwing money towards things that are due sooner. Like property taxes are due in April so I funded that before HOA that’s due the end of May. After I pay something, then I can go down to what I would need to pay monthly to have it when it’s due next year. I paid my car registration. It was 356 for both so now I can just put in 29 a month.  

Comments

@jotunheim great plan!  

Answer 3

I think the first year will be the hardest. Fight through it.  

Answer 4

I’ve thought of using our tax return to help build my sinking funds and then add to them each month to get them replenished. Car tabs and house projects are my focus. I’m starting Christmas now and back to school- the other things I typically cash flow.  

Comments

@impellent50081 thanks!  

Answer 5

Honestly I’ve just started by funding them as fast as I can by the order in which they are due, for example my husband’s car will probably need tires in June, so I funded that up to the amount as fast as I could. Our property tax for our ranch is due in December—the amount is pretty low—so I funded that already. Other things I’m kind of guessing on and funding what I can when I can. Christmas I’m setting aside $100 per month and will make due with what I’ve got come Christmas time!  

Answer 6

I know some will put aside the full amount for a particular sinking fund if it's due soon, while others will put money towards it monthly until filled. Welcome to this group!