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Do you struggle to save for life’s big events?
Maybe you’re trying to save for a nice vacation. Maybe you’re saving for holiday gifts. Maybe you’re shooting for something smaller, like a new TV, but you keep coming up short when it is time to buy.
Trust me, we’ve all been there.
If you’re like most of us, however, you probably you kicked the can down the road and plopped that purchase on a credit card. Then, the next time something came up, you were probably a little short 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.
Here’s the good news: The cycle of splurge, debt, and regret can stop today. Keep reading and learn how to save cash for anything you want by using a “magical” trick called a sinking fund!
Afford Anything with This Trick
The strategy laid out below can help you break that boom and bust cycle for good. Seriously, this is going to help you save money so you can buy almost anything you want.
With a simple shift in your savings 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
Using a sinking fund is one of my favorite ways to save fast. Although it is called a “sinking fund,” in reality, you’re not sinking anything – you’re building…and quickly!
Here’s how to start your own:
- Choose a specific item to save for – like a vacation, holiday gifts, or an emergency fund.
- Open a new savings account to keep this money separate from your other funds (FYI, online banks are perfect for this).
- Give your fund a name like “Greg’s Awesome Vacation Fund,” “My Emergency Fund,” “Christmas Gift Fund,” etc.
- Determine how much money you need and how much time you have to save.
- Create an automatic transfer (or direct deposit) to move money into your new savings fund each month.
- Set up as many new funds as you need and repeat the process!
Pretty easy right?
Example of a Sinking Fund
Let’s take a look at an example of how a sinking fund works.
Suppose 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. ($2,400/12 months = $200/month) In 12 months, BOOM, you’ll have exactly $2,400 saved for vacation…and you’ve barely lifted a finger!
How awesome is that?
Our Top Savings Account – Start your new sinking fund by using our top high-yield savings account – the UFB Best Savings Account from UFB Direct! Currently, you’ll earn an excellent 5.06% APY on your money with no minimum balance requirements. Get started here.
Sinking Funds – Why They Work
Here’s why the 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!
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?
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, right now, we really like the UFB Direct Best Savings Account. This account currently offers a rate of 5.06% APY – which is considerably 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 our 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 Account Here – Open a new UFB Best Savings Account at UFB Direct Bank and earn 5.06% APY with no minimum deposit required! Get started here.