“Sousou” Why Sinking Funds Matter

Kofi Gyebi
Founder 400LB Elephant

What is a “Sousou”?

A sousou has multiple meanings and uses. Sousou’s can be used as a collective saving account that family members contribute to monthly. At the end of the month a different family member receives the pot. Growing up my mom used to have these envelopes and socks filled with coins. Each one was what we now call a sinking fund but for her it was a sousou. It had various purposes. Sometimes the  money was for an upcoming large purchases. It was sub category for something she didn’t have enough cash to buy outright so bi weekly she would put $10 in an envelope for travel to Europe, $40 in another envelope for Christmas gifts, and $100 in quarters for my future college expenses.

Fast forward

Fast forward to 2019 and this vital form of saving is a buzz word in the FIRE community. For example my mac book pro I received as a graduation gift in 2010 stopped working a month ago. If I saved $100 over the past 11 months, I would’ve had enough money to buy it outright. Adulting requires sinking funds, here are a few sinking funds; furniture, braces, computers, dogs, dog maintenance, or even Christmas presents. You might be wondering, how do I create a sinking fund?

Apps

There are several apps out there that allow you to create a sinking fund like Mint or Every Dollar. I have several sinking funds 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. Hope you enjoyed “sousou why sinking funds matter.

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