Glossary
Sinking Fund
A sinking fund is money you save incrementally for a planned future expense — like a vacation, insurance premium, or holiday gifts — so the cost doesn't hit all at once.
Why it matters
Irregular expenses are budget killers. A $1,200 annual insurance premium feels overwhelming in one month but manageable at $100/month saved ahead of time. Sinking funds turn lumpy, stressful expenses into predictable monthly line items.
Example
Planning a $2,400 vacation in 8 months? Set aside $300/month in a sinking fund so the money is ready when you book.
How Ray helps
Ray can identify your recurring annual and semi-annual expenses from past transactions and suggest monthly sinking fund amounts. Ask to surface bills that caught you off guard last year.
$ ray "what large expenses should I be saving for?"Related terms
Budget
A budget is a plan for how you'll allocate your income across spending categories, savings, and debt payments over a set period — usually monthly..
Emergency Fund
An emergency fund is cash set aside specifically for unexpected expenses like medical bills, car repairs, or job loss.
Zero-Based Budget
A zero-based budget assigns every dollar of income a specific job — spending, saving, or debt payment — until your income minus your allocated amounts equals exactly zero.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Cash Flow
Cash flow is the net amount of money moving in and out of your accounts over a period.