◈ GLOSSARY · PERSONAL FINANCE
Sinking Fund.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
A pool of cash you build up monthly for a known, future expense — property taxes, a vacation, a new roof, Christmas. Different from an emergency fund because the expense is expected, just lumpy. The point is to stop putting predictable bills on a credit card.
◈ IN PRACTICE
Example
Annual property tax bill of $6,000 due in December: park $500 a month in a labeled HYSA bucket starting in January, and the bill is fully funded by the time it lands.
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