Sinking funds vs emergency funds: what they are and how they could help you
Saving is an excellent way to meet future goals by setting aside a substantial amount of money. However, these two types of savings - sinking funds and emergency funds - serve different purposes.
Dividing your savings into separate categories, each with a unique purpose, can provide clarity and boost your savings. That’s why financial experts recommend building up a sinking fund and an emergency fund.
But what does each do?
Watch the video to find out.