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Sinking fund vs. emergency fund

Planned costs vs. true surprises.

4 min read

Both are savings, but they have different jobs.

The difference

  • Sinking funds: for costs you know are coming, like insurance, holidays and tires
  • Emergency fund: for true surprises, like losing a job or an unexpected medical bill
  • Keeping them separate stops planned costs eating your safety net

General educational information, not financial advice. Clever Coin Jar isn't paid by any bank or app.