sinking funds.

I told you that I'd be sharing a bit about our financial journey over the next few weeks.

I just almost had a big post complete about my life as a people-pleaser when the electricity flashed due to the thunderstorm and I lost half of it.

So I decided maybe it wasn't time to share all of that this evening.

Instead, I thought I'd give a little explanation about what Dave Ramsey refers to as "sinking funds" and how we use them here at the farmhouse.

Three words.  Or two words and a number.

Capital One 360.

I first read about Capital One 360 on a Dave Ramsey Facebook group that I'm a member of.

Someone asked if there was a good savings program online that could be used with sinking funds.

Several members commented about Capital One 360, so I decided to try it out.

And I absolutely LOVE it.  

Capital One 360 allows us to make several different little savings accounts that are earning a small amount of interest each month and that take more than one click to get to.

You can get your money within 1-2 days, but unlike our emergency fund that is a click away, these funds take some effort to access.

​One example of a sinking fund we have started is our Disney 2020 account.​

We have it set up to withdraw $30 a month right now from our checking account and just put it into the Disney account for the trip we have planned for 2020.

When we're done with the debt snowball, we'll add more than $30 each month to be able to pay cash for the trip.

Some of our other accounts include "house repairs", "new car", "annual taxes", "hunting trip" and a savings account for each of the girls.

Some of these accounts get a specific amount added to them weekly, some twice a month, and some monthly.

At this point, we don't even think about the debits.  

They come out on payday and since they are already taken out of our budget, we don't even miss them.

An added bonus is that Capital One is doing all of the work for us...every single month.

So that's how our sinking funds work.  

You can have up to 25 separate "line items" on Capital One 360, so as you can imagine, the savings possibilities are endless.  ❤️🏡❤️