Too many wishes to fund
Hach, how I wish I had more income.
I created savings goals for three wishes:
- Bachelor Party
- Life Past Lockdown
I barely have money to even fund one of them as I am still building my emergency fund, trying to get a month ahead, and build sinking funds. So these aren't a priority right now, but I'll still try to funnel some money into them here and there. They are basically a colorful (yellow) wish farm. I'm okay with that it helps me keep track of them.
I noticed that while I want to be financially responsible and build buffers I can't put my wishes on hold for too long otherwise I'll be unhappy. Funding the priorities fully will probably take another year or so and the categories above are going to take place before that. If I'm not realistic about it and plan for it at least a little, I will sooner or later destroy my budget completely.
How do you all handle reality vs ideal financial responsibility?
Hi there, It is always really difficult when you start. One way to do it is to focus on one thing at a time. And since getting a month ahead can be a game changer in how you approach budgeting as a whole, it might be worthwhile to concentrate on that. Then, work towards either emergency funds or sinking funds.
If you need to see progress towards your wish farm, perhaps even setting aside $5 or $10 per paycheque on each of them will help. It is small but likely doable. Then, as you feel more comfortable with your budget overall, you can increase the funding. It may feel more purposeful rather than funneling some money here and there.
One thing to keep in mind with your sinking funds is that you don’t need to fund a whole year in advance you just need to be putting enough in to cover the bill when it comes. For example, if your car insurance bill of $600 is due in 3 months, you need to fund $200 monthly. If you keep funding in the same manner you should always have the money available when the bill comes due.
Here is two screen shots of my sinking funds. I call them Freedom Accounts. Some have set amounts and some get funded if I decide to. I could fund some of the smaller ones in full but I like doing it as a monthly “payment.” I has a few freedom accounts to start but over time as I’ve gotten better with my money I’ve been able to fund more things.
Hopeless Noob said:
Funding the priorities fully will probably take another year or so and the categories above are going to take place before that. If I'm not realistic about it and plan for it at least a little, I will sooner or later destroy my budget completely.
Exactly. Your current plan isn't realistic. So what should give? Fund the emergency fund a bit less every month? Get a month ahead less quickly? Smaller funding goals for the wishes you have listed? Or as Getting control has mentioned, maybe, you are funding your sinking funds too much. You should strive for a constant budget month after month. So don't go and think you should fund sinking funds to the rim and then stop funding them. It is a lot easier in general to plan to fund the sinking fund all the time, up to a pre-defined limit (which you may never reach).
Perhaps instead of wishes you should count only wants?
Want is not a need. On tight budget please try even live poor and make sure you have always savings, for rainy days and a little cash with you. These first before anything else. You can walk and have fun in woods for free.
Make trip or two when you have money for it, but please after anything else more needed.
This way you can reduce a lot your YNAB wishes categories. I hope this helps.