How Sinking Funds Can Save Your Budget

I have done several episodes on sinking funds over the years. But, I still think it is important to bring it up at least once in a while. When I went back and checked my notes the last time I did an episode on sinking funds was last summer. So, I think we are due for another mention about how useful sinking funds can be to help you stick to your budget. If you are not familiar with the term sinking fund, it is basically an amount of money set aside for a specific future expense. The account is typically funded on a weekly or bi-weekly basis so that by the time that expense is expected to happen, the money is already set aside. Sinking funds are used for the types of costs you know will be coming, they just don't occur on a regular weekly or monthly schedule. So, when they do come up, you don't want to use other resources to cover them if you fall short. Sinking funds can be segregated within your main checking or savings accounts. Or they can be in separate bank accounts - it just depends on what works best for you and how detailed you want to get. ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.lolasfrugallife.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.facebook.com/LolasFrugalLife/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Support this podcast:  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://anchor.fm/lolak/support⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Check out my Etsy Shop: ⁠⁠⁠⁠⁠⁠LolasFrugalLife - Etsy⁠