Sinking Funds

Have you ever heard the term “sinking funds?” If you haven’t or if you want to learn more, quality Naperville financial services can tell you all about “sinking funds” and help you to start your own sinking funds saving account. In short though, sinking funds refers to money that has been put aside to help you plan for inevitable repairs or replacements on your possessions. All cars, for example, depreciate in value and performance and will eventually require some type of maintenance or repair. The same is true for homes; sooner or later, you’re going to have to fix that fence or replace your roof.

As Naperville financial services can explain, sinking funds are different than your emergency savings funds. Emergency savings should be used for the truly unexpected events in life—for the little surprises that pop up out of nowhere. You already know your home, your car, or your other possessions will require you to invest money at some point, so why not start preparing for these investments? That way, when they do come up, you’ll be ready!