Guide
Sinking fund categories: what to actually save for
The hardest part of sinking funds isn't the math — it's deciding what to save for. Here's a practical list of the categories worth a fund, grouped so you can pick yours in a couple of minutes, with example monthly amounts.
New to the idea? Start with how sinking funds work — this guide assumes you know the basics and just want to choose your categories.
Two kinds of category
Before the list, one distinction that decides how you save for each one:
- Ongoing funds never end — car maintenance, home repairs, pet care. You pick a steady monthly amount and keep topping it up, so there's always something there when the bill lands.
- Dated funds have a target and a date — the holidays in December, a vacation in June. The monthly amount is just the target divided by the months left.
Most people need a mix of both. Below, each category is marked so you know which kind it is.
Home & car — the ongoing ones
These are the costs that turn into "emergencies" only because nobody saved ahead. They rarely have a date, so treat them as ongoing.
- Car maintenance (ongoing) — tires, brakes, servicing, the surprise repair. A steady ~$50 a month covers most of it before it happens.
- Home repairs & maintenance (ongoing) — the boiler, the roof, the leak you didn't expect. Even $40–$75 a month builds a cushion fast.
- Appliance replacement (ongoing) — fridges and washers don't last forever. A small monthly amount means the next one isn't a credit-card moment.
Annual & seasonal — the ones with a date
These arrive on the calendar every year. You know exactly when, so they're perfect dated funds.
- The holidays (dated) — gifts, food, travel. $600 by December starting in January is just $50 a month, and no December panic.
- Gifts & birthdays (dated or ongoing) — birthdays, weddings, anniversaries. Spread across the year so no single month takes the hit.
- Insurance premiums (dated) — the annual car or home policy that lands as one big bill. Divide it by twelve.
- Property & car taxes (dated) — known amount, known date, ideal for a fund.
- Annual subscriptions (dated) — the yearly renewals that always feel like a surprise but never are.
Life & travel
- Vacation (dated) — $1,200 by June = $150 a month. It's paid for before you go.
- Weddings & big events (dated) — your own or the ones you're invited to.
- Back to school (dated) — supplies, clothes, fees, all landing in the same few weeks.
Health & pets
- Medical & dental (ongoing) — deductibles, the dentist, the glasses. Not a true emergency, just predictable.
- Pet care (ongoing) — routine vet visits and the occasional bigger bill.
How many should you have?
Fewer than you think. Start with two or three — too many at once spreads your money thin and gets hard to track. Pick the categories with the nearest or largest expenses first, get those funded, then add more. The free tracker below holds three on purpose: it's the right number to begin with.
How to pick yours
Run your last twelve months through three questions:
- What big expense caught you out? That's your first fund.
- What's coming that you already know the date of? Those are your dated funds.
- What keeps repeating with no fixed date? Those are your ongoing funds.
Set up your categories — free
Once you've picked your categories, a spreadsheet does the rest: name each goal, set a target and a date, and it works out the monthly amount and the honest on-pace date for you. The Sinking Funds Starter is a free Excel tracker for up to three funds — the perfect number to start with.
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When three isn't enough
Most households end up with more than three categories once they get going. When you're there, the full Sinking Funds Tracker handles up to 15 funds — dated and ongoing side by side — with a 40-row activity log, a Google Sheets version and a Midnight Pine dark mode. Same calm design, a lot more room, one-time payment.
Questions
What categories should a sinking fund have?
Group them into home & car upkeep, annual & seasonal costs, life & travel, and health & pets. Start with the two or three that would hurt most if they arrived all at once.
How many sinking funds should I have?
Start with two or three. Fund the nearest or largest expenses first, then add more. A free tracker for up to three funds is a good way to begin.
What are the most common sinking fund categories?
The holidays, car maintenance, vacations, home repairs, insurance premiums and gifts — predictable, and large enough to hurt if you haven't saved ahead.
How much should I put in each category per month?
For a dated goal, divide the target by the months until you need it. For an ongoing category, pick a steady amount you can keep up, like $50 a month.
Do I need a separate account for each fund?
No. One savings account is fine as long as a tracker tells you how much of the balance belongs to each category.