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business Friday 11 March 2022
Get on top of planned expenses with sinking funds

By AMANDA BARROSO of You can also use windfalls
NerdWallet like tax refunds or gift mon-
In a given year, you likely ey to boost these accounts
have expenses that you and reach your goals fast-
know are coming — holi- er. Just keep in mind: Put
day gifts, the family vaca- money into sinking funds
tion you take every sum- based on priority and ne-
mer, annual homeowners cessity. Required fees or
association fees or maybe memberships should come
membership renewals. But before wants, like a new
just because these costs couch or exercise bike.
are predictable doesn’t If you have leftover money
mean you’re always pre- in a sinking fund, either keep
pared. it there so you’re ahead of
If you are pulling from your the game for next year, re-
emergency fund or using allocate it to the next prior-
a credit card to cover pre- ity or pad your emergency
dictable costs, you might fund, if needed.
consider using one or more CAN YOU HAVE TOO MANY
“sinking funds.” A sinking SINKING FUNDS?
fund is a savings account The trick with sinking funds
dedicated to a particu- is striking the right balance.
lar expense that you fund In this June 15, 2018, file photo, cash is fanned out from a wallet in North Andover, Mass. “You can absolutely over-
gradually through regular Associated Press complicate your financ-
payments. Sinking funds SAVINGS ACCOUNTS? good idea to separate out THE STRATEGY BEHIND SINK- es by having too many
often have a deadline as- A sinking fund is different your emergency fund from ING FUNDS of these sinking funds,”
sociated with them, but not from other kinds of savings a sinking fund just because Most sinking funds have a Block says. You might find
always. accounts — like an emer- otherwise it is a little bit target date, and with this that having multiple sav-
You can add sinking funds gency fund or a traditional tempting to dip into your deadline “comes a strate- ings buckets to fund with
to your budget for expens- savings account — in a emergency fund for things gic way to plan responsi- each paycheck feels over-
es that come at the same few ways. An “emergency that aren’t really emergen- bly for that purchase,” says whelming. Setting up au-
time each year or to plan fund is for true emergen- cies,” says Madison Block Love, who currently has 13 topay might be one way
a big purchase you want cies, and then your sinking , a marketing communi- sinking funds. For example, to help streamline things.
but don’t necessarily need fund is for a dedicated, ex- cations and programs as- if homeowners association Some banks offer custom-
— like a new couch for your pected planned purchase sociate with the nonprofit fees are due in May each ers the ability to customize
living room or that piece of in the future that we know American Consumer Credit year, you can start plan- savings buckets within their
exercise equipment you’ve is coming,” says Miko Love Counseling agency. ning ahead to have the accounts.
been eyeing for months. , an accredited financial Sinking funds also differ cash on hand. Figuring out your top few
Either way, sitting down counselor and creator of from traditional savings ac- Let’s take the HOA exam- priorities and setting up
with your calendar and The Budget Mom, a web- counts because they have ple: If annual dues are $500 sinking funds is a good start.
noting upcoming expenses site with resources to help a specific goal and target and you have six months “(Y)ou probably don’t re-
is a good way to get ahead people create and stick to deadline. That helps you to save, you need to put ally need a separate sink-
of predictable costs and a budget. track progress on multiple about $83 a month in your ing fund for every single
prevent unwanted debt or Because they have differ- goals while putting all your sinking fund. Or roughly $42 little expense that you are
dipping into your emergen- ent purposes, separating savings into one large pot per paycheck if paid bi- anticipating,” Block says.
cy fund. sinking and emergency can get confusing and weekly. Or $21 a week. As You can always add more
HOW DO SINKING FUNDS funds is wise. make you lose sight of your you can see, it’s highly cus- sinking funds if you find this
COMPARE WITH OTHER “I do think it is kind of a goals. tomizable. strategy works for you.q

United Airlines to bring back workers

idled over vaccination

CHICAGO (AP) — United ing the step because it ex- Limacher said. Last year,
Airlines will bring back em- pects coronavirus cases, CEO Scott Kirby pushed
ployees who were placed hospitalizations and deaths the mandate as a critical
on unpaid leave last year to continue to drop over safety measure, and United
because they refused to the next few weeks. became one of the most
get vaccinated against New reported cases of CO- visible U.S. corporations to
COVID-19. VID-19 in the United States impose a vaccine require-
The airline told employ- have dropped sharply ment. The company said
ees in a memo Thursday since mid-January, when that about 97% of its 67,000
that workers who avoided the highly contagious omi- U.S. workers got the shots,
vaccination by claiming cron variant began to and only about 200 were
a medical or religious ex- wane. terminated. In this July 2, 2021 file photo, a United Airlines jetliner taxis down
a runway for take off from Denver International Airport in Denver.
emption will be allowed “Of course, if another vari- More than 2,000 workers Associated Press
back starting March 28. ant emerges or the COVID claimed a medical or reli-
The company’s vice presi- trends suddenly reverse gious exemption from vac-
dent of human relations, course, we will reevalu- cination. They were not sued the Chicago-based Thursday that the company
Kirk Limacher, said in the ate the appropriate safety fired, but were placed on company. still requires new employees
memo that United was tak- protocols at that time,” unpaid leave, and several A United spokeswoman said to be vaccinated.q