When I looked at my monthly budget I felt worried I had to pay for new car tires birthday gifts and a vacation But then I thought about using a sinking fund A sinking fund is a smart way to save money each month for a specific goal It helps you avoid the stress of saving a big amount all at once It also makes sure you're ready for those planned expenses that can mess up your budget Key Takeaways Sinking funds are a structured way to save for planned expenses rather than using a general savings account They help you avoid the financial stress and debt associated with large unexpected expenses Sinking funds can be used for a wide range of expenses from vehicle maintenance to vacations Properly managing sinking funds can lead to better financial planning and security Sinking funds differ from emergency funds which are for unexpected financial needs What is Sinking Fund For A sinking fund is a smart way to save money for big expenses that aren't in your monthly budget It's used by governments businesses and people to prepare for future costs In accounting it's a special account to pay off debt or replace assets over time https youtu be q pNZQWrurk feature shared Definition and Purpose of a Sinking Fund For people a sinking fund helps prepare for big costs that aren't monthly It lets you avoid debt You can save for things like car repairs pet care home fixes birthdays weddings and... Login to read full