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Hey Reader,

Happy Thursday and almost end of year!

If you're new to this newsletter, thanks for joining.

Every two weeks, I send an email rounding up tips, stories, and resources on improving mindset, money, productivity, or other lifestyle matters.

I often draw inspiration for these newsletters from conversations with friends.

I recently had a long conversation about personal finances, a topic I love learning and talking about.

So today, I want to share a personal finance life hack that can be particularly helpful during the holiday season.

A time when expenses soar and the credit card bills pile up.

And considering the new year is around the corner, it's the perfect time to kickstart some new practices or routines.

Introducing the concept of sinking funds.

Sinking funds are basically savings accounts that are designated for specific expenses.

This is not the same as an emergency fund.

Emergency funds are for expenses you cannot predict. Sinking funds are for expenses that you can predict.

Take this as an example: You know based on past spending patterns that you usually spend around $800 during the holiday season.

$800/12 months = $67/mo.

Set up a separate savings account for "Holiday Spending" and automate a transfer of $67 each month into this sinking fund.

By the time the holiday season rolls around, you'll have exactly, or very close, to the amount you need to spend, without feeling the stress or burden of sudden credit card spikes.

You can apply this same concept to almost any thing!

I have 10+ different savings accounts that I automate a transfer into each month.

To give you some ideas, here's a few of mine:

• Wedding 👰🏽
• Travel ✈️
• Gifts 🎁
• Gifts for Myself 👜
• Charitable Contributions 🙏🏽
• Car Maintenance 🚗

I love the concept of sinking funds because it promotes disciplined financial planning, and enables you to navigate anticipated expenses or aspirations, without disrupting your financial stability.

Many online banks have high savings rates and allow you to easily create multiple savings accounts while tagging each one with a name to identify what it's for.

I use Ally Bank for all my sinking savings accounts.

Managing multiple savings accounts may seem like a lot, but it's really not...

I have each account set up to have an automated transfer on the 1st of the month.

After they're set up, it requires almost zero maintenance and the only time I access it is when I actually need it for the intended purpose.

The key here though is setting up the automations.

Automating can make a HUGE difference in ensuring this process is effective. Don't leave it up to chance or memory.

What are some of your favorite personal finance hacks? If you found this tip useful, let me know!

WHAT I WATCHED 📺

I recently watched Netflix's latest documentary called "Curry & Cyanide".

It's about a Kerala woman named Jolly Joseph, who murdered 6 family members over the course of 14 years.

Hits close to home for me as I'm from Kerala, and majority of this doc is in Mayalalam!

I've watched it twice now, and was left absolutely stunned both times.

If true crime content is your jam, I recommend giving this a watch.

PS: You can always reply directly to this email to reach me.

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