Viewing a single comment thread. View all comments

Werewolfdad t1_iyeg14x wrote

Sinking funds aren’t savings. They’re delayed spending. Is that your issue?

If you save $500 a month for a year then spend $6k on vacation, you’d just record the $500 per month as the expense. The actual incurred expenses and the transfer out of the sinking fund to pay off your credit card would be transfers and ignored in your budget

4

paintingredroses OP t1_iyeisb3 wrote

Thanks for your response!

My problem is definitely that SFs shouldn’t be included in savings.

I think I’ve decided to add the SFs as an additional expense category for the month-to-month deductions and then keep the structure I outlined above. Some of the SFs so have don’t necessarily get used during the same calendar year or at the same rate as what is saved monthly. (i.e., $6k sinking fund, but only used $3k).

Appreciate the food for thought!

1

Liquidretro t1_iyf3tpc wrote

The spending doesn't change your savings rate though.

1