Sinking funds have long been helpful for companies and bondholders to minimize risk.
Once you determine what you want, say a new couch for $1,000-$1,500 for your living room, your sinking fund is for the sofa, not for another expense.
Both your sinking fund and emergency fund are safety nets but for different purposes.
Budgeting is an essential tool for understanding your income sources less fixed and discretionary expense categories.
Please make a list of sinking fund categories, break them down into more specific items. Then determine the target amounts for each.
You can open an FDIC-insured saving account for each type or have one large sinking fund named sub-accounts.