Way For Financial Safety

The more money you will save, the more you can control your own fate. Sometimes people bother to save money because of “less income”. Though to some extent, it is very challenging but if you left with £7 at the end of the month, then what is wrong with savings?

It does not matter how much you save it may be as small as 2 pounds. Never resist yourself to take a step. Saving money can give you multiple benefits such as peace of mind, strong financial condition, and many more. A number of people, who understand how important is to save money for the future, follow different ways to accumulate money.

In many cases, people want to save money but they do not have any idea about where to start? Savings do not mean you cut a small amount from your monthly income and deposit it somewhere. Many people with good income won’t able to make an effective saving plan. Now, you can imagine, it requires some basic skills and intelligence.

You might be wondering for the simplest and effective way to save your hard-earned money to fight with unexpected expenses. Though at some point, you can take various financial help such as:

Reach out: You can ask for help either from your friends and relatives.

Encash your investment: It may not be an ideal choice but if you are facing some terrible financial situation, then you should go for it. 

Dispose of the things: You can sell your own stuff to others at good prices. 

Cover surprising cost with a loan: If you fail to get help from the above three mentioned points, and then you can cover your expense with the cheapest personal loan or other short term loans. 

Nobody wants to face some terrible situation BUT who knows what is going to happen tomorrow. This is the reason we have talked about ‘SINKING FUND’. You may not have heard this term before and it is far different from the other types of savings such as emergency funds or rainy day funds. 

We have mentioned a detailed analysis of it and the things you should know when you start a sinking fund. Now without wasting any single minute, let’s jump into the deep of this topic. 

We have mentioned a detailed analysis of it and the things you should know when you start a sinking fund. Now without wasting any single minute, let’s jump into the deep of this topic. 


As it name suggests that fund at the time of the sinking. It is a sum of money you put simply apart from other types of savings. You do not have to deposit a fixed amount per month. You can save according to your CONVENIENCE in the form of cash envelops or saving accounts. The best part of this fund is that you can use this for managing both large and small unexpected expenses. 

Anyone who wants to live a debt-free life must have a sinking fund. It is basically an easy and flexible way to manage unexpected expenditures without disturbing your monthly financial plan. 


There is a big misconception and that is sinking fund is equal to an emergency fund. But there is a huge difference between them. It may be quite surprising and we already mentioned above that it is different from other types of savings. 

Let’s understand this with the help of an example:

You need to place your car brakes but you do not have an idea when you will need the money. In this situation, you can use a sinking fund. 


Suppose you lose your job and you fail to manage the day to day expenses. In that tough scenario, an emergency fund is far better than a sinking fund. 

You can predict that managing large expenses is far better than sinking. And many expenses such as home renovation, booking for travelling; you can use either sinking or emergency fund. 


Once you choose a sinking fund the best way to keep your money, then you must be wondering that how to create a sinking fund?

Whenever you ready for a sinking fund, you have to decide how much money to have distributed for the fund. Once you complete the first step, then divide this by the number of months you have until the next expense. This will facilitate you to create a budget. You can add that predicted amount in your financial plan. But make sure you are efficiently preparing a plan and it should not happen that sinking fund may disturb your overall monthly income. 


You know you can use this unique fund in different areas. We have listed some categories in which you must include this fund to stay from the financial crisis. Let’s have a look at them...

Desktop funds

People often forget to consider their tech gadgets but it can bring some huge unexpected expenses. For instance, you are preparing a really important PowerPoint presentation but imagine your computer is not working anymore. 

If you are tech-savvy, then you can manage it but if not, then you will have to call someone to fix your gadget. It would be better if you create a desktop or computer funds to cope up with such expenses. 

Gifting fund 

It is one of the major surprising costs. WHY?

This is because you get an invitation to a party or marriage just two or three days before it happens. And it becomes too difficult to manage the cost of the gifts. But imagine you are saving some amount of money every month to deal with such costs. 

You can easily manage gifts expenditure without worrying about your financial plan. 

Medical fund

A medical emergency, this is something that can totally exhaust your savings and can bring catastrophe in your budget. It is one of the dangerous expenses and to manage it you have to prepare in advance. Though it may happen that your savings won’t able to help you, in that situation, you can opt for various borrowing options. 

You can break your other savings if you have OR you can approach direct lenders in the UK that provide short term loans with no credit check.  In this, you can get money even with the less-than-perfect credit score and obtain the benefit of quick funding. 

Travelling fund

Sometimes people already prepare in advance for travelling. But there are many certain situations where you have to travel somewhere. And going somewhere means you have to do shopping and tickets, etc. It may be a bit hectic if you do not have any savings. You can initiate a travelling fund where you can save money for the trip purpose. 

Car fund

If you own any vehicle whether it is a car or bike, then you know how it is difficult to maintain this stuff. You have to bear all the minor and major expenses of it. And the cost of repairing is quite high which may affect your pocket. 

It would be great if you start a small saving in the name of a car fund. This will provide you the instant help whenever you will need assistance. 

To conclude, no one in this world can predict unexpected expenditure. But you can prepare yourself for it. It may be challenging because you have to sacrifice a lot to save money each month. Once you develop the habit, then you will see some fruitful result of it. GO, and start SINKING FUND today, and manage both expected and unexpected costs. 

Post a Comment

Previous Post Next Post