Personal Finance
Sinking Fund
Definition
What is Sinking Fund?
Money accumulated gradually for a known future expense.
Example in practice
How This Looks in Practice
The household saves monthly for annual insurance premiums.
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Related Terms
Personal Finance
Savings
Money set aside rather than spent, often for emergencies or future goals.
Personal FinanceEmergency Fund
Liquid savings reserved for unexpected expenses or income disruption.
Personal FinanceNet Worth
Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.