Project 40, Set Up Sinking Funds, is another project where I get to feel virtuous because I’m already doing it.
Which is a nice thing, because sick kids have kept me from making much progress on my goals and would have kept me from working on any big project for this. It was kind of a relief to find that this week’s was one I could not worry about accomplishing.
As part of my regular budgeting procedure I track our sinking funds so I know what we have available. We kind of use sinking funds for everything – vacations, home repairs, bigger home projects (like replacing our kitchen countertops eventually), regularly replacing computers (my husband is an IT guy and truly does “need” a new computer much more frequently than most people), even clothing.
If it’s not a regular monthly expense, I have it set up as a sinking fund. I probably go a little overboard with it, but I love Excel and spreadsheets so I had fun setting the spreadsheet up, and tweaking it as needed.
I don’t have separate savings accounts for all of my sinking funds (only the car replacement fund is on its own). Instead I simply track it via the spreadsheet. It’s easy enough, and then I don’t have to reconcile dozens of accounts.
Honestly, I feel a little silly admitting how much fun I have playing with spreadsheets. Please, someone else tell me that they also have a love for Excel!
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