How a sinking fund can help you meet predictable one-off expenses

The cost of buying a new AC, doing up your house or planning a vacation is spread out over the entire year instead of hitting your budget hard in one month

Money doesn't come easy. But, if you manage it well, there's a good chance you will end up rich. Mumbai-based certified financial planner Pankaj Mathpal says, "When it comes to expenses, there are two types, the unexpected and the expected ones. And, you have to incorporate both in your monthly budget for efficient money management." You might have heard of setting up an emergency fund as a money management technique. But, did you know that you also need a sinking fund as a part of your monthly budget? 

What is a sinking fund? 

It is the money we keep aside