How to Create a Holiday Sinking Fund in Just 3 Months

The holiday season is just around the corner. But if mugs of hot cocoa and twinkling lights bring you anxiety about money, it’s time to start planning a holiday sinking fund now. A sinking fund is a small savings fund that helps you get ready for a future expense you know is coming up. The goal is to incrementally save ahead of time instead of draining your reserves or charging your credit card when December rolls around.

Follow these six steps to save up in a holiday sinking fund over the next three months so you can sit back and enjoy the season without worrying about money. 

Calculate your holiday spending budget

Before you start saving for your holiday sinking fund, set a financial goal by calculating your estimated budget. Add…