January is the perfect time to start fresh and set financial goals,
and as promised, I’m giving you all the deets on Sinking Funds this month.

One smart way to plan for future expenses is by using sinking funds.

But what exactly is a sinking fund? 

A sinking fund is a savings strategy where you regularly set aside money for specific future expenses. This could be for anything predictable (or unpredictable) like home repairs, property taxes, vacations, holiday shopping, or even saving for a down payment on a home.

My husband and I use an extra savings account we have to place money in monthly. The amount varies depending on what all we’re saving for at the time…the boys’ birthdays, vacation, home upgrades…you get the idea! Our Christmas budget is NEVER an issue because we have this account.

Sinking funds can help you BUILD WEALTH…let’s talk about how 

Avoid Unexpected Expenses:  By planning for future expenses, you reduce the risk of financial surprises and this helps you avoid dipping into emergency savings or taking on debt.

Save for Big Goals:  Whether it’s a dream vacation, holiday gifts, or a down payment for a new home, sinking funds make it easier to achieve your goals without financial stress.

Have a Plan:  Simply having a plan in place for your money empowers you to make smarter financial decisions and stay on track with your goals.

Start your year off strong by creating a plan with sinking funds and watch how it transforms your financial health.

And I’m here to help!! Give me a shout if you have more questions or need help knowing just how much your down payment savings goal should be  😊

**If you haven’t done so already, now is the perfect time to find yourself a FREE app to create a monthly Budget that will help with your savings goals too.