What You Need to Know About a Sinking Fund
Paying for significant expenses can be challenging, but a sinking fund may pave a better way.
This strategy helps those who want to manage their finances better and gain peace of mind.
Sinking funds can be a game changer for individuals and households.
Americans have been saving more, as illustrated by the US personal savings rate of 14.9% for May 2021.
The timing for setting up sinking funds could not be better.
Sinking funds have long been helpful for companies and bondholders to minimize risk.
What is a Sinking Fund?
you can create a sinking fund, dedicating a savings account for a specific expense that may be too large to handle without borrowing the money.
A Sinking Fund for Your Household
An emergency fund is for the money you set aside for unexpected costs.
Sinking Fund Vs.
The sinking fund is for saving money for a known purpose.
Alternatively, you can be more specific:
You can have a sinking fund by categories.
Click Here to Learn How to Set Up a Sinking Fund!
to learn how to save money and invest!