It’s not flashy. It’s not trendy. But developing a savings mindset and using sinking funds has saved me thousands of dollars—and a whole lot of regret. Here are three real-life examples where this simple strategy changed the game.

1. The Purse That Taught Me to Pause
Years ago, I was on a girls’ trip to New York, and I had one goal: buy the designer purse I’d been eyeing for months. I had saved every extra dollar into a sinking fund. When the moment came—I was ready. But when I saw the bag in person, something didn’t click. The color wasn’t quite right. The straps felt flimsy.

And here’s the powerful part: because I had saved over time, I didn’t feel pressure to buy it just because the money was there. That sinking fund gave me freedom. I walked away without regret, and I used the money for something that actually brought me joy.

2. The Pool That Took Five Years—and Was Worth Every Minute
Building a pool isn’t cheap, and the process can be stressful. But we took the slow route—saving bit by bit over five years. No financing. No dipping into retirement. Just one sinking fund and a whole lot of patience.

When we finally broke ground, we didn’t have to make compromises. No cutting corners. No second-guessing whether we could afford the extras. We got exactly what we wanted—without a monthly payment hanging over our heads. That peace of mind? Worth every month we waited.

3. The SUV I Didn’t Buy (And the Minivan I Love)
Let’s be honest—car shopping can bring out all the status-driven emotions. I had my eye on a luxury SUV. But as a parent of three little ones, I knew the wear and tear would be real. Juice boxes, sticky hands, dings from car seats…

Instead of rushing into a big car loan, we saved and took our time. That patience led us to a minivan that checked all the boxes—and left us with thousands still in the bank. I’ll take sliding doors and zero car payments over bragging rights any day.

Why Sinking Funds Work
Here’s the simple beauty of sinking funds: you choose a goal, break it into monthly savings targets, and watch it grow. Whether it’s a vacation, new appliances, or holiday shopping, sinking funds take the emotion out of spending and replace it with intention.

You’re not just “spending money”—you’re redeeming money you saved for a reason.

Want to Save Faster?
I’ve got a whole episode dedicated to how I saved $4,000 in record time without selling everything I owned. Check out the next podcast or episode for practical tips you can start using right away.

Final Thoughts
The best money advice I’ve ever received wasn’t about maximizing credit card points or picking the right ETF. It was this: Patience builds peace. Whether it’s a purse, a pool, or a practical car, the slow route has never let me down.

Stop chasing fast fixes. Start building sinking funds—and a life that’s aligned with your values, not your impulses.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How This Underrated Savings Hack Saved Me Money appeared first on ROI TV.

Building an Emergency Fund The size of an emergency fund depends on several factors, like income stability, household structure, and life stage. Generally, three months of essential expenses are recommended for those with stable salaries, while six months is ideal for those with variable incomes. Couples sharing expenses can aim for three months of joint living costs, but single high-income earners or families with a stay-at-home parent should consider saving for six months of essential expenses. An emergency fund covers unexpected costs like medical bills, car repairs, or unpaid time off, providing much-needed flexibility and peace of mind.

Cash Management for Retirees For retirees, Aaron recommended holding one to five years’ worth of expenses in cash or cash-like equivalents to avoid selling investments during market downturns. The specific amount depends on guaranteed income streams like Social Security or pensions. For example, retirees spending $4,000 per month would need $48,000 for one year, $144,000 for three years, and $240,000 for five years in cash reserves. These reserves act as a financial buffer, allowing investments time to recover without locking in losses during economic slumps.

Saving for Short-Term and Long-Term Goals Setting aside money for short-term goals—like buying a home, upgrading a car, or taking a big trip—is best done in high-yield savings accounts, money market funds, or CDs to protect against market volatility. Establishing an ‘opportunity fund’ allows for bold choices, like investing during market dips, switching to a dream job, or launching a side hustle without financial strain.

Strategies to Build Financial Resilience Aaron shared practical strategies to build financial resilience:

• Automate Savings: Set up automatic transfers of $20 weekly into a high-yield savings account to build an emergency fund gradually.
• Cut Variable Expenses: Reducing impulse spending, canceling unused subscriptions, and dining out less frequently can free up funds for savings.
• Use Sinking Funds: Create separate savings for predictable costs like car repairs, insurance premiums, and home maintenance to prevent these expenses from derailing your budget.

Timeline and Challenges in Building Emergency Funds Building an emergency fund takes time. Most people require one to two years to save three to six months of essential expenses, depending on income, spending habits, and debt load. Saving $250 per month would take three years to build a three-month fund ($9,000) and six years for a six-month fund ($18,000). Increasing that to $750 per month would shorten the timeline to one year and two years, respectively. Redirecting bonuses, tax refunds, and other windfalls can also accelerate progress. Consistency and flexibility are key.

Practical Mindset and Financial Wellness Achieving financial resilience requires clear goals, sustainable plans, and motivation from early progress. Small wins create momentum and build confidence, helping you avoid feeling overwhelmed and stay on track. Remember, financial wellness is about progress, not perfection—celebrate those small milestones along the way.

Market Recovery and Investment Strategy Aaron highlighted historical market recovery timelines. The 1929 crash took 25 years to recover in price but only 4.5 years with reinvested dividends, while the 2020 crash bounced back in just six months. On average, bear markets recover in five years, underscoring the importance of having cash reserves so you’re not forced to sell investments during downturns. Reinvesting dividends can significantly shorten recovery periods, proving that a long-term investment strategy is crucial for financial security.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How to Prepare for Unexpected Expenses appeared first on ROI TV.