Ever been hit by a big bill — car repair, annual insurance, a wedding gift — and had no idea how you’ll pay for it?
Here’s the fix: Sinking funds.
A sinking fund is a savings strategy where you set aside small amounts regularly for big, known future expenses. And at Vizzve Finance, we believe this is one of the most underrated financial tools for peace of mind.
✅ What is a Sinking Fund?
A sinking fund is a separate savings pocket created for specific future expenses that you know are coming.
Examples:
₹2,000/month for annual car insurance
₹1,000/month for holiday travel
₹3,000/month for wedding expenses or gifts
₹5,000/month for new phone/laptop
🔁 Unlike emergency funds (for unexpected events), sinking funds are planned savings for expected costs.
📊 Why Are Sinking Funds So Powerful?
🔹 Avoid Debt Traps
No need to swipe your credit card or take a loan when expenses hit.
🔹 Reduces Stress
You’re not shocked by bills. You’re ready for them.
🔹 Makes Budgeting Easier
Your monthly expenses are smoother because big costs are broken down.
🔹 Financial Confidence
You're in control. No guilt, no overspending.
🧠 How to Start a Sinking Fund (Step-by-Step)
✅ 1. List Future Expenses
Think of anything you’ll need to spend on in the next 6–12 months:
Insurance premiums
Birthdays & festivals (Diwali, Raksha Bandhan)
School fees
Home maintenance
Gadget upgrades
Travel plans
✅ 2. Estimate the Cost
Say your car insurance renewal is ₹12,000 in 6 months.
That’s ₹2,000/month.
✅ 3. Set Up a Sinking Fund for Each Goal
Use Vizzve’s digital savings goals feature to create multiple pockets — one for each sinking fund.
✅ 4. Automate the Saving
Let Vizzve auto-transfer money every month to your goal so you don’t have to think about it.
✅ 5. Spend Guilt-Free When the Time Comes
When the expense hits — you already have the money. No stress, no debt.
📂 Sinking Funds vs. Emergency Fund vs. Savings
| Type | Purpose | Planned or Unplanned? | Good for |
|---|---|---|---|
| Emergency Fund | Crises, medical, job loss | Unplanned | Financial security |
| Savings Account | General wealth building | Flexible | Investments, future goals |
| Sinking Fund | Known expenses (travel, bills) | Planned | Stress-free spending |
🧮 Real-Life Example
🎯 Goal: ₹30,000 for Diwali Gifts and Travel
Start in August
Diwali in November = 4 months
₹7,500/month = No credit card stress, no EMI headache
💡 With Vizzve, you can create this Diwali goal in seconds and track your progress visually.
💬 FAQs
1. Can I create multiple sinking funds at once?
Yes! Vizzve lets you set up unlimited digital sinking funds — travel, health, birthdays, you name it.
2. What’s the ideal number of sinking funds?
Start with 2–3 based on your most recurring annual costs, and expand gradually.
3. Where should I park my sinking fund money?
You can use a high-interest savings account, or fixed deposits for long-term funds. Vizzve will guide you with the best options based on your timeline.
4. Isn’t this the same as budgeting?
It complements budgeting — but with goal-based intent, making your budget smarter and future-ready.
📌 Final Thoughts: Plan It, Fund It, Forget the Stress
Sinking funds make you feel rich without actually spending more. You're not just budgeting — you're preparing for life.
🎯 At Vizzve Finance, we help you turn financial anxiety into financial freedom, one smart goal at a time.
📲 Start Your Sinking Fund Today with Vizzve
Set your goal
Automate your savings
Spend stress-free when it’s time
Because smart spending starts months before you swipe.
And that’s what Vizzve is all about.
Published on : 17th July
Published by : SMITA
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