So you want to start saving money with sinking funds. That’s awesome!
Sinking funds have been a game-changer for my finances over the years. They’ve prevented me from having to dip into my emergency fund for those irregular or planned expenses, which has been a huge stress relief.
Today I’m sharing the top sinking funds categories you might need in your budget and a helpful sinking funds tracker to stay organized.
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- Sinking funds for beginners: Why you need them in your budget
- How to use the cash envelope system without cash
- How to create a budget for beginners
Table of Contents
What are sinking funds?
A sinking fund is money you set aside each month to pay for an upcoming one-time or regular planned expense. Think of sinking funds as mini-savings accounts for expenses that you know are coming up, such as car insurance or a wedding in one year.
Having a sinking fund can help you save money, so you’ll be prepared to cover expected expenses without having to dip into your emergency fund or go into debt.
The typical budget is designed to cover expenses on a monthly basis or by paycheck (if you budget by paycheck). However, we all have expenses that occur on an annual, irregular, or sometimes unpredictable basis.
A sinking fund can help you plan for these large expenses by setting aside a small amount each month, so you’ll have the money available to pay for these expenses, without stress or worry. Sounds like a good idea, right?
If you want to learn more about sinking funds, such as how to track sinking funds in your monthly budget, head over to this in-depth guide here.
Today we’re going to cover sinking fund examples and the most common sinking funds categories you might need in your budget. I’ve also included some of my favorite sinking funds tracker printables to help you stay organized and learn how to track your sinking funds.
Feel free to use these sinking funds worksheet PDF to help you stay motivated when reaching your savings goals!
Top Sinking Funds Categories You Need In Your Budget
The sinking funds you choose to create in your budget will depend on your lifestyle and goals. Most sinking funds fit into one of the following three categories:
- Large planned purchases(new car, new phone, family vacation)
- Annual expenses that may have been overlooked(insurance bills, taxes, school tuition)
- Unexpected expenses(car repairs, home repairs, replacing a laptop, medical expenses)
Read Next: 50 creative ways to save money on a tight budget
How much should I put in a sinking fund?
Here’s a simple sinking fund template to follow when setting up your sinking funds and deciding how much money you should save. Of course, you’ll want to tailor it to your own personal circ*mstances and goals.
1. Decide which sinking fund categories you’d like to create.
2. Determine the amount you need to save in each category.
3. Write down the deadline (or due date) to save up in each category. How many months do you want to save over?
4. Divide the total amount needed in each category by the number of months until you need it.
5. Set up automatic transfers from your checking account to your sinking fund account every month.
For example, you want to go on a trip to London in eight months. You’ve budgeted $2,000 for the trip, which means you’ll need to save around $250 per month for the next eight months.
Here is a list of different types of sinking funds you may want to consider including in your monthly budget, depending on your lifestyle and goals.
SINKING FUND TRACKER SALE! Each printable tracker is $1.99 or you can grab our 14 essential sinking funds trackers for a discount.
Christmas Sinking Fund
A recent survey found that 68 percent of Americans plan to use credit cards to cover at least half of their holiday spending.
If you’re tired of overspending during the Christmas season, the better option is to set aside money each month so you’ll be prepared to cover any holiday-related expenses without going into debt. This is why it’s important to have a Christmas Sinking Fund.
I like using this cute printable sinking funds coloring sheet to help me save up money for the holiday season. Whether you want to save money to buy Christmas gifts, go on a trip, or host a fun holiday party, this savings tracker can help you get there.
How to use: Download and print this sinking fund template at home. Break down your savings goal into 12 steps and write the amount on each level of the Christmas tree, with your goal amount at the top. Color in each level as you hit your goal. This printable allows you use one line per month. Or you can use one line per week. It’s up to you!
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Halloween Sinking Fund
Just like Christmas, Halloween is popular holiday that can cost a lot of money if you’re not prepared. Whether you want to buy Halloween decorations, candy for trick-or-treaters, carve pumpkins, throw a Halloween party, or purchase a cool costume, all these expenses can add up quickly.
I like using this cute printable sinking funds tracker to help me save up money for Halloween. Having a visual savings tracker is so helpful and it’s a fun way to track your progress. Hang it up on your wall or fridge and watch your savings grow!
How to use: Download and print at home. Break down your savings goal into 10 steps and write the amount on each level of the jack o’lantern, with your goal amount at the top. Color in each level as you hit your goal.
Car Sinking Fund
If you have a car, then you need to have a car sinking fund in your budget. A car sinking fund can be used to help you save up money to purchase a vehicle or for car maintenance and repairs.
Car maintenance and repair costs may include regular oil changes, car washes, tire replacements, insurance, registration, and any repairs. Having a sinking fund can help you be prepared for these expenses without having to go into debt or dip into your emergency fund.
How to use: Download and print at home. Break down your savings goal into 12 steps and write the amount on each level of the car, with your goal amount at the top. Color in each level as you hit your goal.
SINKING FUND TRACKER SALE! Each printable tracker is $1.99 or you can grab our 14 essential sinking funds trackers for a discount.
Vacation Sinking Fund
Don’t forget to budget for the fun stuff! Even if you just go on one trip per year, saving up in advance for your vacation will make the experience better. Because knowing that your vacation is paid for in cash can help take the financial stress out of planning your trip.
Travel is important to us. We like to set aside money each month so we can travel every year without having to go into debt.
I love using this cute printable sinking funds tracker to help us save up for a nice vacation. Whether you want to go on a weekend adventure, a tropical cruise, or relax on a beautiful beach, this savings tracker can help you get there. This can be a fun way to track your progress and help you save money faster.
How to use: Download and print at home. Break down your savings goal into 20 steps and write the amount on each level of the palm tree, with your goal amount at the top. Color in each level as you hit your goal.
College Sinking Fund
Getting a college education is expensive! One of the reasons why I was able to graduate school debt-free was because I set up a college sinking fund for myself. Each month, I set aside money to help me cover the cost of my school tuition, textbooks, and other school-related costs.
I created this cute printable sinking funds tracker to help me stay motivated and track my savings. It’s perfect for those who want to save up money to go back to school or you want to save for your child’s education.
How to use: Download and print at home. Break down your savings goal into 20 steps and write the amount on each level of the graduation cap, with your goal amount at the top. Color in each level as you hit your goal.
Pet Sinking Fund
A pet sinking fund can be used to help you save up money to adopt a pet or for pet care costs. Owning a pet comes with their own set of expenses, such as trips to the vet, grooming, food, treats, toys, daycare, insurance, and so on.
I like using this cute printable sinking funds tracker to help me set aside money each month for my pet cat.
How to use: Download and print at home. Break down your savings goal into 10 steps and write the amount on each level of the pet, with your goal amount at the top. Color in each level as you hit your goal.
Emergency fund
The key difference between and emergency fund and a sinking fund is that an emergency fund is money set aside for unplanned or unknown expenses.
Most financial experts recommend having at least 3-6 months of living expenses saved up for in your emergency fund. However, if you can afford to do so, I recommend having at least 9-12 months’ worth of living expenses saved up.
If your emergency fund is not fully funded and you want to continue building it, you can set aside money each money to put towards this account. Here’s a beginner’s guide to building an emergency fund.
If you haven’t yet started your emergency fund, then I recommend building a $1,000 starter emergency fund. This can help you build a good base, especially if you’re currently paying off debt. Then, once you’ve paid off all debt, you can build a bigger emergency fund.
This cute jar savings tracker can help you stay motivated while saving your $1,000 starter emergency fun.
How to use: Download and print at home. Each time you hit a savings goal, color in the appropriate circle. Once all circles have been filled in, you will have saved your $1,000 starter emergency fund! YAY!
SINKING FUND TRACKER SALE! Each printable tracker is $1.99 or you can grab our 14 essential sinking funds trackers for a discount.
Home maintenance and repairs
If you’re a homeowner, then it’s important to set aside money for repairs and regular maintenance in a Home sinking fund. This can cover expenses such as a leaking fridge, a broken A/C, basem*nt flooding, new roof, and so on.
How to use: Download and print at home. Break down your savings goal into 12 steps and write the amount on each level of the house, with your goal amount at the top. Color in each level as you hit your goal.
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House down payment fund
Do you want to save money for a down payment on a home?
Whether you want to buy a condo, a town home, or your forever dream home, having a sinking fund can help you get there faster. Having a home savings visual tracker is so helpful and it’s a fun way to track your progress. Hang it up on your wall or fridge and watch your savings grow!
How to use: Download and print at home. Break down your savings goal into 20 steps and write the amount on each level of the house, with your goal amount at the top. Color in each level as you hit your goal.
Baby fund
Are you ready to start a family? Creating a baby sinking fund can be a smart way to help you save up and make sure you’re financially ready to have a baby. This can include medical costs, furniture for the new baby, clothes for the new baby, toys, and so on.
This cute baby sinking funds tracker can help you stay motivated while saving to hit your goal. Perfect for those who want to get motivated to save for their new baby!
How to use: Download and print at home. Break down your savings goal into 20 steps and write the amount on each level of the baby outfit, with your goal amount at the top. Color in each level as you hit your goal.
Medical Sinking Fund
Medical bills can be a huge financial problem, especially in the USA. Even if you already have insurance, it’s important to create a medical sinking fund or HSA (health savings account). This can help you be prepared financially in case you should get sick or hurt.
Clothing Sinking Fund
Do you want to update your wardrobe or build a capsule wardrobe? You might already include a monthly budget for new clothes and shoes, but if you’re looking to buy multiple items, I recommend creating a clothing sinking fund.
When I was struggling with a shopping addiction, I was buying new clothes every week – especially fast fashion. While I was doing the no new clothing challenge I set aside money each month to put towards my clothing sinking fund. This was a great way to save up to buy higher quality items when I needed to shop or replace pieces in my wardrobe.
How to use: Download and print at home. Break down your savings goal into 20 steps and write the amount on each level of the dress, with your goal amount at the top. Color in each level as you hit your goal.
Date Night Sinking Fund
Date nights are fun and important for relationships. But that doesn’t mean you should ruin your budget to just enjoy a nice evening out with your sweetie. We like to set aside money each month to put towards regular date nights and celebrating our anniversary.
SINKING FUND TRACKER SALE! Each printable tracker is $1.99 or you can grab our 14 essential sinking funds trackers for a discount.
Back-To-School Sinking Fund
If you have kids, it’s a good idea to set up a back-to-school sinking fund. This can help prepare you to cover the costs for school supplies, clothes, lunch boxes, backpacks, and other school-related expenses.
This cute back-to-school fund savings tracker can help you stay motivated while saving to hit your goal.This can also be used to help save up money to pay for your child’s school tuition.
How to use: Download and print at home. Break down your savings goal into 12 steps and write the amount on each level of the apple and books, with your goal amount at the top. Color in each level as you hit your goal.
Dream jars
Do you have big dream goals that you want to reach? Such as saving up money to do a kitchen makeover, start a business, buy a cottage, travel the world, buy a boat, and so on.
No matter what your big goals are, this dream jar savings tracker can be a great way to organize your sinking funds on one sheet. This printable is one of the most popular with Mint Notion readers. I created it because I was looking for an easy way to stay motivated and track my progress while savings up for my goals.
How to use: Download and print at home. Break down your savings goal into 10 steps and write the amount on each level of the jars, with your goal amount at the top. Color in each level as you hit your goal.
Saving up for my dreams
This sinking fund tracker template is similar to the dream jars. It’s a fun way to track up to six different savings goals, such as a new laptop, a new cell phone, a backyard pool, a weekend getaway, and so on.
How to use: Download and print at home. Break down your savings goal into 8 steps and write the amount on each of the coins, with your goal amount at the top. Color in each level as you hit your goal.
Gifts Sinking Fund
Throughout the year, there might be occasions where you’d like to give someone a gift. This may include birthdays, weddings, baby showers, holidays, house warmings, graduations, anniversaries, and other special milestones.
While it feels nice to give someone a gift, this spending can add up and ruin your budget if you don’t plan for it. I don’t include Christmas gifts in this sinking fund as I like to keep all Christmas-related expenses in my Christmas sinking fund. However, you can choose to include all gifts in this fund, it’s up to you!
Giving & Charity Sinking Fund
If you like to give money to charity or a special cause, you’ll want to create a sinking fund to help prepare you for this spending. Some people like to give money to charity or special causes on a monthly or annual basis.
Dentist fund
Going to the dentist isn’t fun, but oral health is super important. Not everyone has dental insure, which is why I recommend creating a dentist sinking fund. This can cover regular cleanings, braces, retainers, cavities, x-rays, and so on.
Track your sinking funds & make saving money fun!
Grab these beautiful printable sinking funds trackers.
This bundle includes 14 essential sinking funds you need in your budget.
