first cash stuffing of may!! (low income) new sinking funds set up! 🩷👑, by BudgetWithAmanda on YouTube. 22 min 32 s.
- Video length
- 22 min 32 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 8
What you need
Steps
List your monthly take-home income and every fixed bill. Subtract the bills from your income to see what is left for savings and spending.
Choose 3 to 5 sinking fund categories, such as car repairs, birthdays, holidays, annual insurance or school costs. Write each one on a separate envelope or binder insert.
Set a target amount and a date for each fund. Divide the target by the number of months until you need the money to get your monthly amount.
Label each envelope with the fund name, target amount and monthly deposit. Keep the envelopes in a budget binder or a locked box.
At the start of the month, withdraw the cash for each fund. Put the right amount into each envelope and write the date and amount on the front.
Record every deposit on a tracking sheet or on the envelope. Add the new amount to the running balance so you always know what is saved.
When you spend from a fund, write the withdrawal and the new balance on the envelope. Never take cash without recording it.
At month end, count each envelope and check it against your tracking sheet. Move any extra to another fund or carry it into next month.
Tips and common mistakes
Start with 3 funds and small amounts, even $5 or $10 per paycheck, so the system does not feel overwhelming.
Keep cash envelopes in a safe place at home or use a separate bank account if cash could be lost or taken.
Do not borrow from one sinking fund for another without writing down the transfer and adjusting both balances.
Review your monthly amounts every few months as bills and income change.
Questions
How much should I save in each sinking fund?
Divide the total you need by the number of months until the expense. For example, $600 for car repairs over 12 months means $50 a month.
Can I do this on a low income?
Yes. Start with whatever you can spare, even a few dollars per fund, and increase the amount when your income allows.
Do I have to use cash?
No. You can use separate savings accounts or a budgeting app. Cash stuffing just makes the amounts easy to see.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
