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Question of the Day: Sinking Funds on Baby Step 2
At 2:06:10 · chapter starts 2:03:00
Cassie in Idaho is laser-focused on Baby Step 2 but has been diverting $2,000 a month into sinking funds for gifts, car repairs, property taxes, and professional memberships. Rachel rules that Baby Step 2 is not the time for elaborate savings sub-accounts; the emergency fund handles unexpected car expenses, and everything else should go to the debt pile. Dave adds context on the origin of the term 'sinking fund' — a commercial real estate accounting concept for systematically reserving money against future capital replacement — before reaffirming that on Baby Step 2, scorched-earth debt payoff is the only move.
