How Sinking Funds Prevent Surprise Bills

Turn known future expenses into simple monthly contributions.

A sinking fund is money saved gradually for a cost you already know is coming. It is different from an emergency fund because the expense is expected.

List predictable irregular costs

Examples include annual insurance, vehicle servicing, birthdays, holidays, school costs and home maintenance.

Divide by the time remaining

Keep each fund visible

Separate pots or clear labels reduce the risk of spending the money elsewhere.

Put it into practice

Use the connected calculator, save the result to your dashboard and review the figure during your next monthly check-in.