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I set up a separate savings account just for car repairs and it saved me last month
My old car needed new brakes, which was about $400. Because I'd been putting $50 a month into that account, I had the cash ready and didn't touch my main savings. Has anyone else tried this for a specific expense?
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kimmurphy10d ago
How many months did it take to save up that $400?
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phoenixw1110d ago
Actually, that's not a separate savings account, it's a sinking fund. The whole point is you're saving for a known future expense, not an emergency. Calling it a savings account is a bit off because it's money you plan to spend. It's a great system, but the label matters for how you think about the money.
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Wait, you actually get hung up on the label? The money is still sitting in a savings account until you spend it. Splitting hairs over "sinking fund" just sounds like pointless finance jargon to me.
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