I just started year 18 of teaching! I can’t believe it. I teach in Northern California at a continuation high school, and most days I love it. Year 18 means I get a step raise. It is not a traditional merit based rase, it is purely based on years of service. If I have done my math correctly, it looks like I will be taking home an additional $300 per month.

Most times when I get any sort of raise, we increase the amount I contribute to my 403b, but not this time. As we are trying to become more financially solvent, we are seeing where we have some holes in our budget. We have sinking funds for many categories, but we have inadvertently ignored some possible big budget busters: home repair/furniture upgrade, new car purchase, and appliances.

We do have a general savings account and a small emergency fund, but none of these things should be emergencies. We know we will need to upgrade our furniture at some point. We also know that when you are a homeowner you need to maintain your investment. Likewise, cars don’t run forever, and we have not been putting away for a new car like we should have been. Appliances fall into that same vein. They don’t last forever, so we need to plan to replace them.

We plan to carve a little bit extra out of our budget and add that to the additional $300 from my step raise to start sinking funds for those categories. I know $100 - $150 a month isn’t much, but it is a start. Eventually, as we fully (to us) fund other sinking funds and pay off our credit card debt, we will be able to increase the amount we contribute to each sinking fund each month.

Baby steps. I always have to remind myself: we did not get into debt over night… It was over a period of many years, so we won’t get out of debt over night either. We need to be patient, stay the course, and be responsible.

These new sinking funds will put one more step between us and financial disaster!

Today is payday for my district. We get paid on the last working day of the month. It was so very satisfying to go to the bank, pull out the money for my envelopes, and then start three new envelopes! Each one doesn’t have much, but I’m so glad we started them! And I’m glad we are making a plan for the money I’m getting from my step raise and not just nickel and diming the money away.