While reading through posts (current and old), I have noticed a lot of talk about "sinking funds" and am curious... what is this?
Think of a sinking fund as a mini savings account for those bills you know you will have come up during the year.
I have money in my sinking funds to cover things like tax preparation, car tags, car insurance, routine vet care, emergency vet visit, snow camp for ds, dental deductables, eye glasses, etc..
This way when these things do come up, I have the cash to pay for them in full, without worrying about it.
Another way to view sinking funds is for those things you don't know about.