Life can be crazy and take the maddest of turns, reality can flip 2x in the blink of an eye and heart beat. So we have to make sure we enjoy it, experience it, stay prepared for it or staying ahead. If you want to design your own future keep reading!
Today’s blog will be around sinking funds and an update where I am with my sinking funds. At the start of the year I believe I mentioned it in one of my blogs that I wanted to start taking finances alot my seriously, and that meant being more serious with my hard earned money and putting it towards experiences, and things that align with my values.
I was a ‘I enjoy capitalism baby and I loved splurging all of my money on makeup, clothes and shoes. When I quickly came to realise primarily during Covid that this isn't it, this can not be my life!
This was when i came across this verse of the bible;
You adulterous people, don’t you know that friendship with the world means enmity against God? Therefore, anyone who chooses to be a friend of the world becomes an enemy of God.
Sinking Funds Explained 🙈
✨A reliable financial strategy you use to save over time for an upcoming expense✨
I think it's important we remain in control over where our money goes and most importantly how much that comes out. Becoming less reckless with what we use our money for is something that I learned the hard way, I would work so hard for many years just to spend and invest in 2 wardrobes.. What experience have I even explored?! Covid really opened my eyes especially to how to consume everything on the internet as well as comparing and competing and all in all it's just not worth it!
Categories For Sinking Funds + How Many You Should Choose 💫
Consider these categories consciously and be aware of who you are spiritually and what aligns with you and your beliefs. Where do you see the BIGGER you? What will she be doing? Where will she be? A reasonable amount to start with are 4-6 sinking funds that are important to you. The more you have, the more you have to maintain and prioritise.
For me, I see myself travelling and consider this my sinking fund priority. I have an efficient and easy system + strategy for my future travels. I am dedicated to my sinking funds, I am dedicated to a more fulfilled and experienced lifestyle.
Saving my money for what really matters and aligns with me spiritually, including my beliefs and values is what I will be doing more of.
Distinguish your short term and long term sinking funds 😜
Short term; 3-6 months. Typically short term goals can be reached in a short period of time, for example Christmas gifts.
Long term however are savings set aside to cover big or one off expenses in the future.
How To maintain Your Sinking Funds 🧚🏽♀️
It is as simple as having a separate savings account and only using it for the purpose of your sinking funds.
An example being, setting up an account with Monzo and creating ‘pots (as many as you like) and the aim is to put a monthly contribution to your sinking fund (pot). I specifically picked Monzo when dealing with my travels as it offers the benefit of staying on top of your real-time spending and insights to where you're spending.
It's also useful and brilliant for overseas use, particularly if you won't withdraw cash and have no added fees when using the card abroad.
Creating a strict payment plan; can look like setting aside money into a savings account that can only be touched if you physically go to the bank to withdraw your money.
This will advocate discipline as well as keeping your sinking funds steady and encourage you to stay motivated towards your goals.
Final Thoughts; ☺️💕
Sinking funds has become such a game changer for me and now will be of help to anyone who comes across this blog. Even to consider it is such a flex because you can really take control over your accumulation of one of the world's most powerful resources.
Creating your sinking funds will give you a sense of control over your earnings and help you to know what and where your money is going. It is true to even give you ease, just to know that your money is going towards something valuable.
It is even better for you to create a visual representation of this on a mood board or gather ideas of interest from pinterest. This helps prioritise your goals, lifestyle and stay true to what you want, who you are and where you’re going.
Comments
Post a Comment