Sinking Fund Examples and Categories

A sinking fund is money set aside for a known future expense. Instead of paying a large bill at once, you save a little each month. Common categories include car repairs, gifts, travel and annual fees.

Practical tips

Start with expenses you know are coming.
Divide each target by the months remaining.
Keep funds in a separate account or labeled sheet.
Review quarterly and adjust.

Free calculator

Try the Sinking Fund Calculator with your own numbers.

Frequently asked questions

How many funds should I have?

Start with a few that matter most.

Should I keep them in one account?

Some people do and track amounts in a spreadsheet.