"Flywheel" Account

I first mentioned our flywheel account in my payday post. This is just a holding place for future bills, vacations, purchases, etc. Over time we have added to our flywheel account, but when we first started it was the bare necessities. If you are just starting to do this, you should include annual bills and then add to it based off your monthly income and what you can afford to include.

Below is our entire flywheel account. Each item can be a different number of months than another item. When you decide to add an item, you then need to figure out when you will need that item fully funded and count the number of months until that item is needed.

As you can see we have included many items on our list. We have very small items of $50 and our largest at $40K for a new vehicle. The items in green are fully funded and the rest is gradually saved up over time. At the bottom is the amount we need to save each month and the yellow is how much we will need from our next paystub, should the flywheel stay the same. This list is ever changing and evolving on a monthly basis. Each month JP and I will sit down and talk about our finances and the flywheel is one that we bring up the most. Should we include anything else? Should we remove anything? It is a team effort and is fun to do over a glass of wine on a weekend night.

As you start to do this, you will find that you may have forgotten some things and that is ok. Just add to it and over time your list will get more refined and will then become a dream list. 

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