Question : Does anyone know what a Sinking Fund is and how to best use it for personal finance?
Typically, sinking funds are funds that a company uses to finance major repairs, maintenance and or replacement of major items. Repayment into where the funds originated, or back into the sinking fund is required. How would a personal sinking fund be ran and would it be beneficial?
- asked by JJ22
All Answers:
Answer #1
Get a list of you major assets that depreciatelike a car or TV with the cost to replace. Dividethe cost by the number of years that you will havethe asset. That amount is what you save each year. Once you have a Sinking Fund, you can avoid debt.See the link below and read about the ReplacementCost Budgeting.
- answered by Kiran C
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measure and fulfill your financial needs
