Ditch Loans! Master Your Budget with the Sinking Fund Method

• Sinking funds help manage large, planned expenses like school fees or insurance premiums without debt.
• Unlike emergency funds, these are for specific, known future costs, allowing you to save small amounts regularly.
• Examples include school fees, insurance, car maintenance, travel, and family events.
• Keep sinking fund money separate in a dedicated savings account or short-term deposit for easy access.
• Regular contributions and separate accounts are key to avoiding loans and maintaining a stable monthly budget.

Why It Matters: Plan for big expenses with a sinking fund to avoid debt and stabilize your budget.