Have you ever planned to make a large purchase but came up a little short when it was time to buy?

Maybe it was a new TV. Maybe it was Christmas gifts. Maybe it was a nice vacation.

Go ahead, raise your hand if this has happened to you. Don’t be shy. We’ve all been there.

If you’re like most of us, though, you probably didn’t forgo what you wanted though, did you? Instead, you kicked the can down the road and plopped that big ‘ole purchase on a credit card.

Of course, the next time something came up, you were probably a little short then too. Again, you put the money on a card, and – before you knew it – you were more worried about paying off your cards than you were about saving money.

It happens.

But, all that can stop today. (And yes, I’m serious.)

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Afford Anything You Want (For Reals)

Here’s a little trick to help you break that boom and bust cycle and start saving money to get anything you want! With a simple shift in strategy, you’ll be able to:

  • Save money for vacation
  • Save money for holiday gifts
  • Save money for a new car
  • Save money for emergencies
  • …and more

You’ll also earn quick wins, so you’re bound to stay motivated and keep moving in the right direction.

Even better, you’ll never have to put this stuff on a credit card or go into debt for it EVER again…and it takes almost ZERO effort on your part.

No more worrying. No more scraping by. Simply pay with the cash you’ve saved and move on with your life.

How would that feel? Pretty AMAZING, right?!?

How to Create a Sinking Fund

This simple trick uses a concept called a “sinking fund.” In reality, though, you’re not sinking anything – you’re building…and fast! Here’s how it works:

  1. Choose a specific item to save for – like a vacation, holiday gifts, or an emergency fund.
  2. Open a new savings account to keep this money separate from your other funds (FYI, online banks are perfect for this).
  3. Give your fund a name like “Greg’s Awesome Vacation Fund,” “My Emergency Fund,” “Christmas Gift Fund,” etc.
  4. Determine how much money you need and how much time you have to save.
  5. Create an automatic transfer (or direct deposit) to move money into your new savings fund each month.
  6. Set up as many new funds as you need and repeat the process!

Here’s an example: Let’s say you want to take a Caribbean vacation, and you’ve got exactly 12 months until you have to book it. After doing some research, you determine you’ll need $2,400 to pay for the entire thing.

So, you open an online savings account, name it “vacation fund,” and set up an auto transfer in the amount of $200 per month. In 12 months, BOOOM, you’ll have exactly $2,400 saved for vacation by barely lifting a finger!

How awesome is that?

Our Favorite Savings Account – Start building your new fund by using our favorite savings account – the CIT Bank Savings Builder! You’ll earn a whopping 2.25% APY when you make a deposit of just $100 a month. Learn more here.

Here’s Why This Works…

If you’re struggling to save, a sinking fund could be a total game changer for you. I mean, imagine having money just sitting in your bank account, ready to pay for whatever you want, whenever you want it! It’s life-changing, right?

Here’s why this sinking funds trick works so well: It’s automatic. Once the sinking fund is set up, it takes ZERO effort to set the money aside. The automation does everything for you!

And, because it’s automatic, you won’t miss the money. Just like having your retirement contribution deducted from your paycheck, it’s like the money was never there to begin with. It’s saved before you get a chance to spend it!

Where to Create Your New Fund

Again, online savings accounts are great for this. First, they keep your new fund separate from your other money. This means it’s less likely you’ll accidentally spend it on other things (like groceries, gas, entertainment, etc.).

Second, it’s a lot of fun – and very motivational – to watch it grow! Finally, online banks typically provide much higher interest rates than accounts at traditional brick and mortar banks.

Although any bank works, we personally use the new CIT Bank Savings Builder account. This account currently offers a rate that’s up to 200x higher than interest rates at some other big-name competitors. Simply make a deposit of $100 a month (or more), and you’re golden.

You can read our complete review by clicking on the link above or open a new account and start saving here.

Sinking Funds: Final Thoughts

We all know that saving money can be difficult. To succeed, it often comes down to proper planning.

By using this sinking funds trick, you’ll be able to save for anything you want AND pay for it in cash. Just automate the process, and the decision to save is made for you.

Why not give it a try? It just might change your life!

Open Your Savings Builder Account – Open a new Savings Builder account at CIT Bank and earn up to 200x more! Get started here.

Setting up a sinking fund is an easy way to afford anything you want. Use it to pay for Christmas, vacations, and more. Get started with this guide!