Questions on sinking funds

1. What is a sinking fund?

2. How are sinking funds typically used in personal finance?

3. What are some common types of expenses you might use a sinking fund for?

4. How do you calculate how much money to set aside in a sinking fund?

5. What are the advantages of using sinking funds to save for future expenses?

6. How often should you contribute to a sinking fund?

7. Can sinking funds be used for both short-term and long-term expenses?

8. How do sinking funds differ from emergency funds?

9. What are some strategies for maximizing the growth of a sinking fund?

10. How can one avoid using sinking fund money for non-essential expenses?