Saving Money Using Sinking Funds



This year is the year for budgeting and saving for me and my family and sinking funds is the first step for us.  I started a little budget series last year and the first step for me was doing a grocery budget. I feel like the grocery budget was a good step that is easily customizable for every family. If you missed that you can find how I setup and use my grocery budget here. This has been a great way for us to save money in the grocery section of our budget. 

Today I am sharing how I set up my sinking funds. This is the first time I’ve used sinking funds so I thought this would a great way for anyone that wanted to setup a sinking fund with me and we can learn and hold each other accountable for sticking to it. We have


What is a sinking fund?

A sinking fund is putting away a small amount of money over a certain period of time with the intent on spending it at the designated time.  For example the most common sinking fund is Christmas.

Based off of our previous years spending, $1000 is about how much we spend on Christmas. We obviously want to spend the money prior to christmas day so I looked at my calendar and said by black friday I want to save $1000.

We get paid weekly and I counted how many paydays to black friday and divided that by 1000.

1000 divided by 48 =  20.83 

So every week when we get paid I’m going to put $20 aside into my envelope for my sinking fund. The nice part about this is, if I decided in May that I want to buy something for the boys or whoever for a Christmas gift I can use that money and just track it in my budget planner


So this is just going to be my January Plan. At the beginning of each month I will do a Monthly Recap of what we saved, what are goal is moving  forward, and just holding myself accountable for following through with these goals. I’d love for you to share any goals you have!


January Sinking Funds


Goal  $1000
Balance $0

Goal $1500
Balance $0

Goal $500
Balance $0

Goal $ 350
Balance $0

Goal $0
Balance $0

 I hope you guys found some motivation in starting your own sinking funds. Let me know what categories you have and what goals you have set for yourself! 


Budget Planner


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