Introduction Managing personal finances effectively requires various strategies to meet both short-term and long-term goals. One powerful yet often overlooked tool is the sinking fund. This article will explain what a sinking fund is, how it works, and why it can be a valuable part of your financial planning. What is a Sinking Fund? A sinking fund is a dedicated pool of money that you set aside over time to pay for a specific future expense. Unlike a general savings account, a sinking fund is earmarked for a particular purpose,…
