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You might recall that I previously discussed what sinking funds were. Now, I want to tell you guys about the sinking funds I am focusing on in 2020. This blog post will take you through my plan for 2020 and what this means for me.
- Travel Fund – $3,000
- Baby #2 Fund – $7,050
- New House Fund – $15,000
Starting in 2020, my husband and I started budgeting together. Please, pray for us! We will also be funding these accounts together.
Based on our budget, we determined that we have $1,500 per month to save.
We are planning to save $300 for 10 months until fully funded.
2.Baby #2 Fund – $7,050
We’re planning to save $300 for 23.5
3.New House Fund- $15,000
We’re planning to save $900 each month. Once the above funds are funded, that money will be used to fund this account.
Any extra income will also be added to our sinking funds to enable us to fund these accounts quickly.
Where We Are Planning to Hold Sinking Funds?
Sinking funds can be held in a variety of different places. However, I like to use my high interest savings account with SoFi to hold my sinking funds.
Reasons why I love my SoFi account:
- 1.60% APY as of January 1, 2020.
- No minimum account balance requirement.
- No monthly maintenance fees.
- No overdraft fees.
- ATM fees are reimbursement.
- Get $50 when you fund your account with at least $100.
- Insured by the FDIC for up to $1.5 million on your deposits.
Click here to open an account with SoFi.
Also, remember that sinking funds do not replace your emergency fund or other saving accounts. This account is in addition to your emergency fund and is used to save for specific expenses.
Summary
This blog post has detailed what sinking funds I will be utilizing in 2020, in order to save for three different events. If you wish to learn more about what sinking funds are and how they can support you to save for one-off expenses in your life, please see the previous post.
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