Guides / Sinking funds
What sinking funds are and why they work
Save a little each month for bills you know are coming.
A sinking fund is money you save in small amounts for a specific future cost. Instead of a $600 car insurance bill hitting at once, you save $50 a month and the money is ready.
Why they work
- They turn big, lumpy bills into small, steady ones
- They protect your emergency fund for real emergencies
- They take the stress out of holidays, birthdays and renewals
- They make your monthly budget more realistic
The math
Amount needed, minus what you already have, divided by the number of months (or paychecks) until it's due. Our sinking fund calculator does it for you.
General educational information, not financial advice. Stretching Funds Today isn't paid by any bank or company.