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Sinking Funds EXPLAINED: What They Are, How They Work & Why You Need Them!
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Let's talk about sinking funds, what they are, how they work and why you need them!
Simply put, a sinking fund is money that you save each month towards a one time or irregular predetermined expense.
Say, for instance, you own a car and know you’ll need new tires 6 months from now. How will you pay for it? Do you tap into your emergency fund? Do you cut down on the rest of your budget? Pay it off by credit card?
In this video, I discuss everything you need to know about sinking funds – the why, the what and the how. You’ll learn how to save smart and guilt-free for big events.
Simply put, a sinking fund is money that you save each month towards a one time or irregular predetermined expense.
Say, for instance, you own a car and know you’ll need new tires 6 months from now. How will you pay for it? Do you tap into your emergency fund? Do you cut down on the rest of your budget? Pay it off by credit card?
In this video, I discuss everything you need to know about sinking funds – the why, the what and the how. You’ll learn how to save smart and guilt-free for big events.
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