We talk a lot about planning for emergencies with a savings account. But now, it’s time to prepare for some fun! We’re about to break down the sinking fund for you.
What is a sinking fund?
It’s your place to save for any future goals (whether you know what those are or not!)
Isn’t that just an emergency fund?
Sort of. An emergency fund is for things you want to prepare for but didn’t expect. A sinking fund helps you plan for significant purchases, especially ones you planned for.
Ooo, I get you! Where should I start?
A savings account is a great place to start a sinking fund. Preferably, you’re looking for one with a high interest-earning rate. Savings accounts are ideal because deposits can be made automatically, making saving a snap!
How much should I save?
Well, that’s really up to you! Start with your goal in mind. Are you heading on a road trip to California? Catalog every expense your trip will cost you. Everything from gas, hotel, food, experiences, and so on. Take that cost and break it down over how long you’ve got before taking your trip. Boom.
Set up your automatic withdrawals, and before you know it, you’ve planned the world’s most stress-free vacation! That is, until it’s time to pick your playlist. (But we’ve got you covered there too!)
Is that everything?
Check your progress and be proud of how far you’ve come! Mobile banking is everything you need to track and adjust your finances for easy access. More of the computer kind? We’ve got that too.
We will support you and answer any questions if you want some guidance. (P.S. – If you’re more of a Social Media person, D.M. us on Facebook or Instagram, and we’ll set you up with someone perfect for you and your goals.)