Sinking Fund
A sinking fund is money you set aside a little at a time for a known future expense — holidays, car repairs, insurance premiums, a vacation. By saving ahead in small amounts, you turn irregular big bills into manageable monthly deposits and avoid reaching for a credit card.
The arithmetic is deliberately dull: divide the cost by the months until it is due. A $1,200 annual insurance premium is $100 a month; replacing a car in five years for $6,000 is another $100. Set aside both and neither arrives as a shock. The distinction from an emergency fund matters more than it sounds — an emergency fund covers the genuinely unexpected, while a sinking fund covers the expected-but-irregular, and mixing them is why emergency funds are so often half-empty for reasons nobody can explain. A new roof known about for two years is not an emergency; it is a sinking fund that was never started. Separate savings sub-accounts keep them honest.
Put it to work
Savings Goal Calculator
Two answers for any savings goal: the monthly deposit that hits your target on time, and when you'd get there at your current saving pace.
50/30/20 Budget Calculator
Split your after-tax income the 50/30/20 way — needs, wants, savings — with monthly dollar targets and the yearly savings it produces.