Sinking funds—plan for big expenses without stress
A sinking fund is money you set aside each month for a future expense—vacation, car, wedding, new laptop. See how much to save per month for each goal. Be ready when the bill comes.
"Beware of little expenses. A small leak will sink a great ship."
Your sinking fund goals
Enter up to 3 goals: name, target amount, and months to save. See the monthly contribution for each.
Sinking funds are part of your “Enjoy life” margin—the Margin Score counts them. For a vacation that pays for itself forever, see lifetime vacation fund.
How I use sinking funds
I use a separate savings account or buckets in my bank. Each payday, I transfer the monthly amount for each goal. When the expense hits, I pay from the fund instead of going into debt or raiding my emergency fund—I recommend you do the same.
Related research
The ideas in this guide are backed by academic and policy research. We organize fundamental studies by Margin Score pillar on our Research page.
View research for this pillar →Key studies: Mental Accounting and Consumer Choice.