And if you use my favorite budgeting tool,EveryDollar, you don’t need a separate savings account at all. EveryDollar will designate that money for you in your budget so you always know exactly how much is in that fund. (More on this in Step 4.) Step 3: Decide how much you need t...
Here are some possible upsides of putting money in a sinking fund: Targeted savings:As a type of savings account, sinking funds allow individuals to save money with a purpose. Better budgeting:Sinking funds help create tangible goals, which can serve as motivation tosave and budgetconsistently....
A sinking fund is money you set aside each month with the intention of paying for a future expected expense. A savings account is the place where you store money you want to save. They’re related, but not synonymous. Not every savings account is a sinking fund. And though many sinking ...