What Is a Sinking Fund, and Why Does Dave Ramsey Recommend One?

What Is a Sinking Fund, and Why Does Dave Ramsey Recommend One?

It's important to have the right types of financial accounts so you can make smart choices about where your money goes. For example, having money in an emergency fund in a high-yield savings account will ensure that you do not end up in debt when you face unexpected expenses. For example, finance guru Dave Ramsey has recommended a sinking fund, but many people don't know what that is or why one would be required.