Yeah, tires for a standard vehicle should never be $900. F that dude, and awesome move you made!

Sophia Rodriguez hehe thank you! It was fun to watch him haggle down to insuring two tires, then just one (which, wouldn’t that mess up the balance to have one amazing tire and three bums? Haha) And then none! :)

Nice!!

Even $520 seems pricy for tires. I guess it will depend on your location and what kind of car you have, but if it's a standard midsize car, perhaps shop around. I typically spend under $300 for great tires that last me 2 years, no problem.

sarahraegraham Fair point! It took me about three months to figure out which tires I wanted. Saving over time did let me “splurge” a bit and get a more durable set for our six months of snow.

Exactly! Personal finance is just that...personal. Dave Ramsey’s advice is a good starting point but it’s best to tweak it as you see fit. What you’re doing is obviously working for you. I’ve just recently started doing the zero based budget & using cash envelopes. I’m already seeing results and I wish I would’ve started sooner 😁

YNAB aka You Need A Budget let’s you set up sinking funds - if you’re looking for a software system

Dave requires a budget, but he's not setting it up for you. It's up to you to include sinking funds in the budget if you want them. Obviously you'd have to budget for car repairs and he never says don't get your car repaired. He's not telling you not to have sinking funds.

What do you mean? Dave tells you to have sinking funds. He doesn't tell you exclusively to have an emergency fund

Lol same. I’ve always been confused when people tried to explain it. It just sounded like a different name for savings account. So I guess I wasn’t too far off. It’s just a short term savings account with a specific purpose.

@@leilanidru7506 yup! haha

I did this method for the first time in 2019 and Christmas was totally different. 2020 was the first year I didn't get a giant Christmas bill in the mail in January and man was that awesome. I also checked out your channel David and you have some good content!

@@michaelanthony6613 Thanks for the channel endorsement! :)

@@michaelanthony6613 Congratulations on the success. Keep it up!

Literally none of those are surprises lol

@@AllTheArtsy right lol.

Only two months left! Congratulations! That is a great accomplishment. I become consumer debt free March 2019 and you are going to love it. Enjoy the ride because it is about to get awesome!

Wonderful! Congratulations!!!!!

Hey, I watch your channel! ❤️

I wish i could like this comment 5 times!! Wahooo!!

What an amazing achievement! Good for you (:

But what are you going to do in Disneyland?

That’s awesome

I live 45 minutes from Disney world and never went.

3 Kpop concerts?! Cool. I have an annual sinking fund for EXO concert ☺ There are rumours that SM Town will come to Malaysia in 2020, so I'm saving up for that too because going to one is in my bucket list ☺

Suzieana Uda Nagu wowww!!! You are a fellow EXO-L!!!! Hi so nice to meet a fellow Eries here!!!!! I went to 3 EXO concerts in 2019.Singapore, Taipei and Malaysia. Ya ya, I heard about the SM Town thingy in Malaysia oso..maybe I will go...

Marie G Hi there, for Taipei I saved about $1500.. Tat includes my fligh tickets, air bnb, vouchers on Klook because I can save some money buying on Klook coz it’s cheaper there. I didn’t spend much on food there only because I cook in my air bnb apartment as much as I can and I only allowed myself to buy some souvenirs for keepsake and to give to friends n family. I didn’t buy any clothes or shoes coz I was on a NO BUY for those 2 items...

I swear every kpop fan needs a sinking fund! Ateez and bts were both covered by my sinking funds 😂

Wow, I'd like to learn more..

I was super excited when Ally started their bucket method. The emails they sent had at the edge of my seat anticipating it's arrival lol

I love Ally's bucket system. I would never want 5+ savings accounts to monitor.

Chase let's you go online and set multiple goals in one savings account. Each deposit can be put toward whichever goals you want. That way you set up separate sinking funds in one savings account.

B Gaudin Good tip. Thanks!!

Wait. You're emergency fund includes a fun fund?

I go to a lot of musicals, but never really put money away for it specifically. Now that theater is pretty much closed without site of when it will return, I have plenty of time to create a sinking fund for it!

What is crossrope?

Natalie Pruitt thanks for this. I think sinking funds are specific to each person though, so this list is just giving viewers ideas.

Thank you, I wanted to screenshot that frame but didn't know how

@@marissal9707 yeah like I don't have a car, so I would have a fund for something else, or just add more to one of the other funds

My hero!

I was looking for that, thank you! ❤

Disgusting

Repellent

As someone who has a serious medical condition I will work really hard to make sure I have good health care and savings as I have been hospitalized multiple times. I am also on a medication that many gov. run health programs do not offer because of the cost. However there are many people who have very low healthcare expenses and they should not have to pay for my health, that is my responsibility. And I am fine with medication being expensive because drug companies spend so much in R&D that they have no guarantee will pay off. Here is a true scenario I am 1 of 4 kids We came from the same parents so we should have the same chances of health issues I have a serious autoimmune condition that requires me to go to specialists every 6 months have bloodwork every 6months and be on a very expensive medication through self injection every 2 weeks. I also have bad vision so I have to pay for glasses and regular eye exams to have my prescriptions updated My 3 siblings go to the doctors once a year and have perfect vision so they don’t have the medical expenses I do I hold a full coverage medical plan that has a low max out of pocket and a really good drug coverage. I also pay a lot for that. My 3 siblings have catastrophic coverage. They pay a few dollars each month and if something serious happens they are covered but they don’t need as much coverage as me. I pay more because I need more Would I like to spend the money I do for healthcare on something fun like a vacation yea but I’m an adult and know I have to put my health first. My siblings should not have to pay for my medical care. If you actually read this whole thing thank you and one final note Universal healthcare is not free in countries that have it their taxes are much higher especially their regressive taxes like sales tax that hit the lowest earners the hardest. It is the rich in those countries that are the best off there because they can travel to the US for medical care. I work in hospitality and we have an entire sector of medical tourism where people from Canada, Europe, the UK and the Middle East come to the US to have medical procedures done. The low income residents in those countries are put on a waiting list as they can not fly to a different country for medical procedures.

Olivia I cant agree with you more!! Very Well said!

I find it abhorrent and I'm an American.

Same. Sinking debt. 😂

I have one account for savings and a spreadsheet manages the split for the sinking funds. And my emergency fund is separate. I have loads funds and it makes like so easy. Never worry about money now.

Yeah, you don't have to keep it all in different accounts if you don't want to. I don't even move mine into savings (though I do put some into savings each month just to have as generic emergency savings). I just let it build in my checking account and then I track it in my budget on Mint by letting my spending (or lack thereof) in the specified category roll over each month.

No thanks.. I choose life.. lol

Oooh, good one! I usually just use my tax return on new game consoles but I'm lessening my refund to in turn have more to spend on my paychecks. But...that in turn allows for me to control what I set aside to save instead of Uncle Sam claiming it all :)

We have 16 but just virtually in Excel. They are all in one bank account but organized in categories in our Excel chart.

I have 13 and every single one of them is a life saver

We love to hear that!!

Blackwater Elephant Is the app simply called “The Checkbook App”?

Karina Gutierrez checkbook ledger I think.

Karina Gutierrez it’s green with brown on the outside and a pen in middle

small starts can go a long way

Right on. In many cases this starts with making more money. I used to do sinking funds on extreme shoestring budget and was going hungry just to meet the sinking fund needs. That right there is an indicator to make more money, side hustle or second job.

At the moment I make 4800 €/year, so I have zero room for sinking funds, but it seems a great idea!

In all seriousness, you have to find a way to increase your income, cut unnecessary expenses, AND spend less. If you can manage to do all three, then I guarantee you’ll have extra money to work with.

It really doesn't make a difference since it's the same amount of money total gaining interest

For sure, however i think its more a mental thing to see an account named "car" or "clothes" and go ok i have x amount for that category. Its like snowball vs avalanche for debt. Its about how people see it and feel about it, not what necessarily makes mathematical sense

Ally, CapitalOne360, etc. Most allow you to make multiple accounts for free, no minimum balances, around 6 monthly transaction options, High yield savings options. You can also nickname the accounts to keep them separated. I have used Ally for years and very happy with them as a company! P.S. American Express is offering some users with a certain balance a high yield savings option. Don't stress too much about choosing one--I would only avoid ones that require a minimum balance or hit you with a fee. Look up one or two and they usually compare their savings rate to other online options.

There’s also digit which will take small amounts from your account every so often. You can set different goals (I have car, dog, credit card and rainy day). While it charges $3 a month, I find it worth it

@@lillianw4714 Yeah, this is what I was concerned with when the video said SIX different bank accounts! I wondered about minimum balances because any bank like that is an absolute no for me. Emergencies happen and sometimes I need all funds. And while I'm willing to pay a $6 monthly fee for my prepaid card as I get my paycheck faster with it, I don't want to add more monthly fees with a bank. I'm going to look at the options you suggested to help find a free option that works for me. I'm even okay without getting interest, because I have a feeling a bank account with no minimum balance, no maintenance fees and offers a decent interest rate is something way too good to be true :)

Kathy Burton Capital One 360 and Ally Bank. I have both! Love them. No fees.

Chase online, you can set up different accounts, or multiple goals in a single account.

Sara Angel Try an online savings account. I am an online ESL teacher. Given that that’s an independent contractor position, I must set aside my own taxes. My first year, I set aside my future tax owed in my regular savings account... but I kept dipping into it and ended up having near-nothing the following April. My second year, I opened an account with VioBank. I give it an A for its interest rate (2%) and a C for its “convenience.” Only because it takes about 10 days for the money I transfer in to be available, and 10 days for it to transfer out. Which, in my situation, is wonderful. I think twice about dipping into my funds when I know I’ll need to wait a week and a half to access it anyway. I’ll be paying my taxes this year with extra savings in tow. Check it out!

Do you have a written budget?

Use a second bank. I used to do the same thing until i segregated my money into another bank. And i leave the card for that new bank at home unless i need to pay for something from the sinking funds (which is usually once every 3 months when i pay utilities)

Well, it depends on your expenses, which are related to your lifestyle, needs, and to the affordances from your context. Generally speaking, track down your expenses (I prefer to do it in a handwritten notebook, because Excel spreadsheets make everything look like "just numbers"), don't feel that you are missing out if you go for the inexpensive options (like, my university building has a room with microwave ovens to heat food brought from home, which is less cool that ordering takeout, but way cheaper) and whenever you choose not to make a purchase, put that money in a sinking fund labelled with a goal you care strongly about. Hope this helps ^^

If you’re more cashed based, you could save every bit of change in a physical piggy bank and dedicate it to a specific goal (mine is a rainy day fund). And whenever you receive “unexpected” cash (ie. Being paid in cash for a side hussle), save $5-10 in an envelope for a retirement fund and the rest in your regular account. While I add extra whenever I can, but these two practices have helped me save hundreds of dollars over the years. Also, being upfront with friends about your finances is hugely beneficial; they all understand where I’m coming from if I say I can’t go out or suggest a lower budget activity instead.

Tiziana Pirola thanks!

Karina Gutierrez thanks!

You can do either depending on your bank. I have my sinking funds in seperate online accounts (only have 2) with my main bank, and my emergency fund with another bank. Its really personal and whatever works for you. Some people also use one online savings account for everything and use excel to keep them on track for how much is allocated to each category, and some people use cash envelopes.

@@jadiecakes3241 ahh okay. I'll need to poke around and see how to do that then. Thank you!

No. Why pay them? Build your emergency savings instead.

@@bionicwoman9884 cause a pet with a chronic condition with $300 in meds a month is heartbreaking emotionally and financially. It's a game of chance at the end of the day and just depends on if you want to take the risk or not. $75 a month is a lot, but it's worth getting a quote to see if it's worth it. Everyone's budget will be different.

I love and hate YNAB. Maybe because they jacked their prices.