Guides / Sinking funds
Sinking funds for car and home repairs
For the costs you know will come, just not exactly when.
Tires wear out, water heaters fail and roofs age. You can't know the date, but you can know they're coming and save steadily.
Car
- List maintenance from your owner's manual: oil changes, tires, brakes, battery
- Estimate a year of maintenance and divide by 12
- Add a cushion for repairs if the car is older
Home
- A common rule of thumb is to set aside around 1% of a home's value a year for maintenance, more for older homes
- Renters: save for moving costs, deposits and replacing appliances you own
- Note the age of big items: roof, HVAC, water heater
Ongoing funds
Unlike a holiday fund, repair funds don't have a due date. Keep contributing and let the balance build; when you use it, keep going.
General educational information, not financial advice. Stretching Funds Today isn't paid by any bank or company.