Explained + Sinking Funds Planner Printables
// Sinking funds are something should be included in everybody's budget in some capacity. A sinking fund is money set aside to cover a future expense.
// WANT // This is a charge that isn't guaranteed to happen or that you could do without if you absolutely had to.
// NEED // No matter what, you are going to have to pay for this. These are items you can't go without.
// If you are just starting to set up your sinking funds, your expenses may be higher now but will get lower as time goes on. If you need money by a specific date, you need to take that into account when determining the amount to budget each month for that sinking fund category.
// This is the maximum amount of money you want to save in this category. It can be high or low and it is OK for some categories to have no cap i.e. down payment savings.
// The first year you decide to start using sinking funds things are going to be a little bit different. If you are like most people, you just floated each bill as it came up.