Editing Sinking fund (section)

==Modern context &ndash; capital expenditure==

Sinking funds can also be used to set aside money for purposes of replacing equipment as it becomes obsolete, or major maintenance or renewal of elements of a fixed asset, typically a building.<ref>{{cite web|url=https://www.rics.org/content/dam/ricsglobal/documents/standards/January_2022_Service_Charges_In_Commercial_Property_1st_Edition.pdf | title=Service charges in commercial property 1st Edition| website=[[Royal Institution of Chartered Surveyors]] |access-date=30 April 2024}}{{cbignore}}</ref>

Historically, the term "sinking fund" was only used to refer to replacement of an asset and "reserve fund" was used for major maintenance or renewal. However, since the mid 2010's the terms are now used interchangeably in the United Kingdom.<ref>{{cite web|url=https://www.rics.org/content/dam/ricsglobal/documents/standards/Service_Charge_Residential_Management_Code_3rd_edition.pdf |title=Service Charge Residential Management Code 3rd edition |website=[[Royal Institution of Chartered Surveyors]] |access-date=30 April 2024}}{{cbignore}}</ref>

===Other applications===
Though the term is often associated to business situations, it has gained popularity as a term people use when they use zero-based budgeting or cash envelope budgeting. In this application, the term "sinking fund" represents a type of category in a person's budget that they allocate money towards for future expenses including those that are long-term and short-term. Money is often allocated towards these sinking funds and can be taken out at any time. 
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