Sinking fund

There are certain formulas that you can use to estimate it.

A guided principle is... [beep] I just want to touch on sinking funds.

Sinking funds is money you're putting aside for targeted or known expenses.

Some of us think that we need so much before we can start.

The truth is that, look, money is never enough.

Is there something I didn't ask that you would want to touch on?

Yeah.

And maybe I would just wanna touch on sinking funds.

Once that's in place, step six is saving for the future.

She introduces sinking funds, which are separate savings accounts for specific planned expenses like a vacation or a new car.

So instead of scrambling when the bill comes, you've been saving a little each month.

And she says automate it, pay yourself first.