Sinking Funds and Peace of Mind

What are sinking funds? Basically, it is saving a tiny bit of money in a regular interval over a long period of time. There are two basic ways you can look at it: First, you may have a specific savings goal in mind. Say for example, your goal is to travel in two years. Your first step is to determine how much money you will need for your trip. If you get paid weekly, break that amount down into 52 weeks times two. (104 weeks). If your trip is going to cost you $3000 in total, then you need to save $28.85 every week for two years until the date of your trip. The second option is to set up a sinking…