Are sinking funds a good idea?
Learn more about sinking funds, their purpose, the different types available, their advantages and disadvantages, as well as tips on setting up a successful sinking fund and suitable investments.
advantages of sinking fund
What is the formula for sinking fund?
A sinking fund is a financial strategy used by companies and individuals to set aside money over time for a specific future financial obligation. It’s akin to a piggy bank, where you save small amounts regularly to cater to a large expense in the future. The term ‘sinking fund’ is derived from the concept of gradually ‘sinking’ or reducing the debt or future obligation.