A sinking fund is a savings pot built up monthly for a specific predictable expense. Here are the 8 most valuable to set up first.
| Fund | Typical annual cost | Monthly saving |
|---|---|---|
| Christmas | £600–1,200 | £50–100 |
| Car insurance + MOT + service | £600–1,000 | £50–83 |
| Holiday | £1,000–3,000 | £84–250 |
| Home maintenance | £500–2,000 | £42–167 |
| Clothing (seasonal) | £300–600 | £25–50 |
| Annual subscriptions | £200–500 | £17–42 |
| Vet / pet care | £200–800 | £17–67 |
| Gifts (birthdays, weddings) | £300–800 | £25–67 |
Track your sinking funds with our free sinking funds tracker.