Sinking Funds: A Strategy for Managing Large, Predictable Expenses Without Loans
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Sinking Funds: A Strategy for Managing Large, Predictable Expenses Without Loans

The article suggests a 'sinking fund' method to manage predictable large expenses without resorting to loans. This approach involves setting aside money regularly for specific future costs like school fees or insurance premiums. By treating these as monthly expenses, individuals can pay in one lump sum when due, avoiding the interest costs associated with credit cards or personal loans and solving the timing problem of large, predictable payments.

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