#136 What The Heck Are Sinking Funds And Why You Need To Use Them

Are you struggling to keep up with unexpected expenses that keep popping up and wrecking your budget? Have you ever heard of sinking funds but have no idea what they are or how they work? If you've ever wondered what the term sinking funds mean, then you're not alone. In this episode, we'll dive deeper into the concept of sinking funds and how they can be used to plan and save for unexpected expenses without feeling like a failure. If you're looking to take control of your finances, then stay tuned for this episode on sinking funds. Hosting Today: Hey, I’m Ashley Patrick, a personal finance expert and founder of Budgets Made Easy. I help busy moms create systems to save money and pay off debt so they can reach their big dreams faster and easier. I was able to pay off $45,000 in just 17 months including $25,000 in student loans in just 10 months. I’m a Master Financial Coach and have a bachelor's degree in psychology and will help you get to the root of your money problems. Since my journey started I have been featured on Fox Business, Yahoo! Finance, Food Network, USA TODAY, MSN, CNBC, NerdWallet, and many others. “It's important to make a list and make a priority list, like put it in an order of what is most important to you, down to the least important. And then as money comes in, you know where it needs to go. So it's so important to make a plan for extra money so that when it comes in, it doesn't just disappear because you do still need to have a plan for it. Just like you have a plan for your regular paychecks and that is how you're gonna be able to stay on track and not get derailed when things pop up.” - Ashley Patrick Timestamps: 00:00 - What today's episode is about 02:33 - What are sinking funds and why do you need them 03:30 - Examples of sinking funds 05:26 - Tips for setting up sinking funds effectively 07:09 - The benefits of using cash envelopes to manage your sinking funds 08:39 - The importance of prioritizing your money plan 09:46 - Creating a priority list 11:18 - The role of a miscellaneous fund in your budget 14:01 - How to access your free Budget Starter Kit For easy step by step directions and worksheets on getting your budget together and done in 30 minutes a month, download my FREE Budget Starter Kit on www.budgetsmadeeasy.com/start And if you enjoyed the podcast today and got some great takeaways, I’d really appreciate it if you followed the Money Mindset Podcast so you don’t miss out on future episodes Resources and Links Mentioned: Budget Starter Kit: www.budgetsmadeeasy.com/start Luxe wallet (cash envelope wallet): www.shopluxewallet.com 10% off code: BMEasy10 Connect with Ashley: Instagram: www.instagram.com/budgetsmadeeasy