In last week’s post on How to Budget for Unexpected Expenses, I described sinking funds as “one of the best budgeting hacks ever,” which means it’s time for me to tell you how they work.
If saving up three to six months of expenses in an emergency fund feels like advice that’s wise but nearly impossible to achieve, there’s growing evidence that you don’t need quite that much money stashed away to cushion you from financial emergencies. $2,500 may be enough to get you started.
If you’ve ever thought about having kids, I’m sure nothing you read and no one you talked to about it promised you it would be cheap. Quick reminder: It costs an estimated $300,000 to raise a child through age 17, according to Finder.