Just to provide a little history, we have NEVER taken a family vacation. Honestly speaking, we never thought that we would have the opportunity to take a vacation. Earlier in the year, I (Nathalie) joined a few groups on Facebook that focuses on finances Recently, there was a long discussion thread about a sinking fund. Of course, I read through each response and learned a wealth information about a sinking fund. Shortly after, I opened a new account and started to transfer our sinking funds into this account.
Someone maybe wondering, what is a sinking fund? Please hold while I share my understanding of a sinking fund. It is a stash (account) (holding place) of funds that are delegated to certain bills/expenses that are coming. We have had our account for three months and the expenses that are coming out of this account consists of: Medical Expenses, School Clothes/Supplies, vacation, Christmas & birthdays. As the nerd, I LOVE the sinking fund concept because it allows us to see exactly what we've saved towards a particular expense. Also, I enjoy it because we were able to cash flow a family vacation through using our sinking fund. We have also learned about the slush fund, but it is not working in a large manner for us at this time. The day that I explained the sinking fund to my husband, he gave me the blank stare because he did not understand the information that I was sharing.
However, as we were on our vacation with financial freedom he seemed to appreciate the sinking fund in a big manner. Although we are still in debt, we are learning methods to spend/use money without jeopardizing our needs! Therefore, our goal is to educate many about how our sinking fund and to use it for our future large expenses.
Someone maybe wondering, what is a sinking fund? Please hold while I share my understanding of a sinking fund. It is a stash (account) (holding place) of funds that are delegated to certain bills/expenses that are coming. We have had our account for three months and the expenses that are coming out of this account consists of: Medical Expenses, School Clothes/Supplies, vacation, Christmas & birthdays. As the nerd, I LOVE the sinking fund concept because it allows us to see exactly what we've saved towards a particular expense. Also, I enjoy it because we were able to cash flow a family vacation through using our sinking fund. We have also learned about the slush fund, but it is not working in a large manner for us at this time. The day that I explained the sinking fund to my husband, he gave me the blank stare because he did not understand the information that I was sharing.
However, as we were on our vacation with financial freedom he seemed to appreciate the sinking fund in a big manner. Although we are still in debt, we are learning methods to spend/use money without jeopardizing our needs! Therefore, our goal is to educate many about how our sinking fund and to use it for our future large expenses.