What in tarnation is a "sinking fund?"

Happy Thursday! This morning I had a great journaling session. It allowed me to throw up all the random thoughts and things in my mind. Took me about an hour, but I was able to start my day with a clear head and a present mind. Would 100% recommend.

DEFINITION
Sinking Funds?

• Imagine you're saving up for a new video game console. Every month, you set aside a part of your paycheck to put into your "console fund." That's kind of like a sinking fund.

• in a more adult case, a sinking fund would be like setting aside money regularly to buy something big, like a car. Instead of waiting until you have to buy the car all at once, you save up a little bit each month.

PRACTICAL ADVICE
Make your first sinking fund

• You have to set aside money to save in some way. Maybe use an envelope, maybe open a new checking account, or maybe your bank has a cool feature that lets you separate the funds within a single checking account.

HELPFUL RESOURCES
Want more details

• Check out this Ramsey article about how to open a sinking fund

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)