There’s more to budgeting than allocating money toward bills. Custom financial planning will help you handle bills and save for the future. Sinking funds are essentially savings goals for specific things. Below is a list of sinking fund categories you should consider for your financial future.
Transportation
Even if your car is completely paid off, consider saving money for transportation. You never know when you’ll need an emergency repair, a new set of tires, or a new car after an accident. You can also use this fund to save for car insurance, permits, and registration fees.
Medical Expenses
Even if you have fantastic health insurance, having an emergency savings fund specifically for medical costs is an excellent idea. Health savings and flexible spending accounts are ideal for medical expenses.
Braces
Saving for your child’s future is a no-brainer, but don’t forget their teeth! Braces are costly but well worth it. Straighter teeth allow for better care and brushing, so save up while they’re young.
Special Occasions
Whether it’s a birthday, anniversary, graduation, wedding, or holiday, celebrating comes with a price tag. Setting extra money aside for special occasions as part of custom financial planning means you’ll have the funds in your account and won’t have to use credit.
Home Maintenance
A home maintenance fund is almost as important as paying your mortgage on time. Houses require a lot of care and upkeep. Whether an appliance breaks down, a leak damages the roof, or you need to replace it, having dedicated savings for your home is the best way to ensure that you won’t be scrambling for money when home repairs pop up.
Cooke Wealth Management can help you build custom financial planning strategies that best suit your needs and future.
