We knew we would not make it out of our debt snowball without having to replace at least one of our vehicles. When we started, we had $191,000 in debt, medical bills and car repairs all around us. And each vehicle was over 10 years old with at least 200,000 miles. We knew a car purchase was in our future.
But we were also determined to incur no new debt.
That meant we would have to do two things I had never done before...
Before we started on this journey of Christ-centered financial wellness, I never thought much about money being currency. In my mind it was just a term that was used by financial analysts. But today is a new day. Today I understand the importance of currency and what it means in my life. Today I understand that money and electricity have a lot in common than you think!
As we have learned more and more about how to lead a life of Christ-centered financial wellness, we discovered another aspect of budgeting that we now embrace wholeheartedly. It has come to the rescue more times than I ever thought possible and I'm excited to introduce it to you today. It's called the sinking fund.
Let’s walk through the 3 things you need to know about sinking funds.