“Sousou” Why Sinking Funds Matter

It’s funny because sinking funds were embedded in my upbringing. Growing up my mom used to have these envelopes and socks filled with coins. When I got older I had learned that her “sousou” is our modern day sinking funds. It was money for an upcoming large purchase. It was sub category for something she didn’t have enough cash to buy outright so she chose to put $10 in an envelope for travel to Europe, $40 in another envelope for Christmas gifts, and $100 in quarters for my future college fund. I’m ashamed to admit it but that was my go-to jar for the ice cream truck.


Fast forward to 2019 and this vital form of saving is a buzz word in the FIRE community. My mac book pro I’d used since 2010 stopped working a month ago, if I saved $100 over the past 11 months the cash for this would’ve been readily available. Adulting requires sinking funds, here are a few suggestions; furniture, braces, computers, dogs, dog maintenance, or even Christmas presents. You might be wondering, how do I create a sinking fund? There are several apps out there that allow you to create a sinking fund like Mint or Every Dollar. I have separate bank accounts like “travel” and “car savings” all created before I heard about these fantastic apps. If you need a new washer and dryer start a sinking fund or sousou to prepare for when the time comes to replace that item.

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