Sinking funds list: 40 categories and how to start
A sinking fund is money you set aside a little at a time for a cost you can already see coming. The point is simple: the annual insurance bill, the holiday gifts and the car repair stop landing on one paycheck. Below is a list to pick from, how to choose your first few, and how to work out the monthly amount.
The list
- Home repairs
- Appliance replacement
- Furniture
- Renter's or home insurance (annual)
- Property tax
- Moving costs
- Security deposit
- Car insurance (6 or 12 months)
- Repairs and maintenance
- Tires
- Registration and inspection
- Next car down payment
- Transit pass (annual)
- Holiday gifts
- Birthdays
- Weddings and showers you attend
- Back to school
- Kids' activities and camps
- Childcare gaps
- Pet care and vet bills
- Deductible and copays
- Dental
- Glasses and contacts
- Prescriptions
- Gym or class membership (annual)
- Software and app subscriptions
- Amazon Prime or similar
- Professional fees and licenses
- Domain and hosting
- Tax bill or tax prep
- Vacation
- Holiday travel
- Concerts and events
- Hobbies
- Clothes and shoes
- Electronics (phone, laptop)
- Haircuts and beauty
- Charity and giving
- Christmas or holiday hosting
- Wedding or big celebration
How to pick your first five
Look back at the last twelve months and find the costs that made you dip into savings or put something on a card. Those are your first sinking funds. For most people they are some mix of car insurance or repairs, holiday gifts, an annual subscription, medical costs and travel. Five is enough to start; you can add more once the transfers feel routine.
How to work out the monthly amount
Target minus what you already have, divided by the months until it is due.
Holiday gifts 900 due in 13 months, 250 saved → (900 − 250) ÷ 13 = 50 a month
Car repairs, no due date, aim for 1,200 over a year → 100 a month
Add the monthly amounts together and you have your sinking fund line for the monthly budget. If the total is too big, push a due date out, lower a target, or start with fewer funds.
Common questions
Sinking fund or emergency fund?
An emergency fund covers what you cannot predict, like losing a job. A sinking fund covers what you can, like a bill with a known amount or date. Most budgets need both; the sinking funds keep the emergency fund from being spent on expected costs.
Do I need separate accounts?
No. One savings account plus a list or spreadsheet that says how much belongs to each fund works fine. Some banks let you split one account into named buckets, which can help if you are tempted to borrow from one fund for another.
What if I use a fund early?
Spend it on what it was for, then reset the target and the monthly amount. If you borrow from one fund for another, write it down and pay it back on purpose.
Keep reading
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