When it comes to budgeting, a whole dictionary's worth of terms gets thrown around. It can be hard — especially when you're new to personal finance — to make head or tail of it.
What are the ideas that don't really make any sense? And which concepts are genuinely worth investing in (no pun intended)?
A sinking fund is definitely one of the latter. Like an emergency or layoff fund before it, a sinking fund is a way to mentally and literally apportion your money so as to better protect you and your peace of mind.