Irregular expenses like car maintenance, property tax, and travel can drain your bank account. A sinking fund, explained by financial planner Thomas Kopelman, can help you save for these expenses without going into debt. Sinking funds are separate from emergency funds and cover planned, non-monthly expenses like insurance premiums and home repairs.

To avoid financial ruin from unexpected costs, start small by automating a monthly transfer for high-priority irregular expenses. Sinking funds can help you budget wisely for financial shocks and reduce the need for credit when expenses hit. Embrace sinking funds to handle irregular expenses and avoid debt from unexpected costs.

Read more at Yahoo Finance: This Money Hack Keeps One-Off Expenses From Wrecking Your Budget