Sample issue

Hi there,

This issue's step: find one "surprise" that isn't

Open last year's bank statements and look for one bill that isn't monthly: car insurance, a membership renewal, the holiday spending in December. That's your next sinking fund.

1. Write down the amount, say $600.
2. Count the months until it's due again: 6.
3. Save $100 a month, or about $46 every two weeks if you're paid biweekly.

Our sinking fund calculator does the paycheck math for you.

Sinking fund idea: "car stuff"

Tires, brakes, registration, a battery. Not emergencies, just the cost of owning a car. One reader saves $40 a paycheck into a bucket called "car stuff" and hasn't put a repair on a credit card since.

Reader question

"Should I pay off debt or build an emergency fund first?" Many people do both in stages: a small starter fund first so a surprise doesn't add new debt, then focus on high-interest debt, then grow the fund. More in How much should your emergency fund be?

Here's to boring bills,
Stretching Funds Today