Sinking Funds: Spend Big Without Guilt

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Everyone needs to save money. And there are different ways to go about it.  Some savings strategies are for long-term.  Others are for things you want to buy soon.

Sinking Funds are one type of saving strategy for short-term saving. Not many people have heard of sinking funds. But they can be very useful.

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The goal of a Sinking Fund is to help you save for major one-time expenses like:  *Expensive vacations *New Appliances *Kitchen Remodel *A New Car *Christmas Shopping

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In fact, you've probably had a sinking fund before!

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If you've ever slowly saved for something you wanted, but couldn't afford, then you've had a sinking fund.

Here's how it works: 

1.) Determine what you want to save for. 2.) Know the total amount you will need to save.

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3.) Figure out when you will need or want to make the purchase or use the money. 4.) Determine how often you want to contribute to savings: Monthly? Weekly? 5.) Establish where you will keep your sinking fund.

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Over time, you will save until you reach your goal.  Then, you can make your purchases without guilt because you will have budgeted carefully for it.

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