JJ22 asked:
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?
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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?
Content supplied by Articlesbase.com
Get a list of you major assets that depreciate like a car or TV with the cost to replace. Divide the cost by the number of years that you will have the 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 Replacement Cost Budgeting.