Featured Article

Sinking Funds : Types, Benefits & How to Start One

9 May 2025 | 7 mins read

Imagine you are planning a big vacation, a home renovation, or even an unexpected but necessary car repair. How do you ensure you have enough funds for these costs without scrambling for money at the last minute or relying on credit cards? The answer lies in a sinking fund. A sinking fund is a strategy where you save a little bit of money over time for specific, anticipated expenses. Rather than waiting for the expense to arise and dealing with the pressure of funding it all at once, a sinking fund allows you to plan ahead and contribute steadily. This not only reduces financial strain but also helps you stay in control of your budget. Let’s find out more about sinking funds, how to create one, and how it can benefit your personal finance strategy.