What are good sinking fund categories to start with?

Start with the expenses that have surprised you before: car registration and repairs, annual insurance premiums, holiday gifts, medical copays and home maintenance. Add more categories as you get comfortable.

How many sinking funds should I have?

Enough to cover your predictable irregular costs, but not so many that tracking becomes a chore. Many people start with three to five and grow the list over time.

What is a good amount in a sinking fund?

The amount that will cover the expense by its due date. Divide the expected cost by the number of paychecks until then, and subtract what is already saved.

Can I combine several expenses in one fund?

Yes. A single car fund can cover registration, tires and repairs, as long as you know the yearly total. Separate funds give more detail, while combined funds are simpler.

Sinking Funds Categories and Examples

By Money editorial team · Updated October 26, 2026

Sinking funds and yearly bills planner spreadsheet on two laptops

A sinking fund category is just a named bucket for an expense you can see coming. Here are the most common ones, grouped by area of life, with notes on how often they come up. Pick the ones that match your household, and skip the rest.

If you are not sure how a sinking fund works, start with what are sinking funds. The short version: divide the cost by the number of paychecks before the due date, and set that amount aside each time you are paid.

Car and transportation

Fund	How often	Notes
Vehicle registration	Yearly	Renews at a fixed time in many states
Inspection or emissions test	Yearly or every two years	Required in some places
Car insurance (if billed every six months)	Twice a year	Use the yearly total
Oil changes	Quarterly	Depends on mileage
Tires	Every few years	Divide the cost by the years between replacements
Repairs and maintenance	Ongoing	A monthly amount keeps a cushion
Next car fund	Long term	For the eventual replacement
Driver license renewal	Every few years	Divide by the number of years

A yearly car insurance bill turned into a weekly sinking fund contribution

Home

Fund	How often	Notes
Home repairs and maintenance	Ongoing	Small repairs happen every year
Appliance replacement	Occasional	A washer, fridge or water heater will eventually fail
Roof or HVAC	Long term	Large, so start early
HOA special assessment	Occasional	Some associations bill extra
Pest control or lawn care	Quarterly or seasonal	Depends on the service
Moving fund or deposit	When planned	Truck rental, deposits, utility setup
Home decor and furniture	Planned	Avoids putting purchases on credit

Insurance and health

Fund	How often	Notes
Annual insurance premiums	Yearly	Renters, homeowners, umbrella and pet insurance
Medical deductible cushion	Yearly	Depends on your plan
Dentist	Twice a year	Cleanings and any follow-up work
Eye exam, glasses or contacts	Yearly	Contacts may be replaced more often
Prescriptions and copays	Monthly	Useful when costs vary

Family and pets

Fund	How often	Notes
Back-to-school supplies	Yearly	Late summer spike
School fees and field trips	Yearly	Per child
Summer camp	Yearly	Deposits may be due in spring
Kids' clothing	Quarterly	Growth spurts
Vet checkup and vaccines	Yearly	Per pet
Pet boarding or sitter	Yearly	Travel and vacations
Pet license	Yearly	City or county fee

Holidays and celebrations

Fund	How often	Notes
Holiday gifts	Yearly	Start in January so December is calm
Holiday meals and decorations	Yearly	Easy to overlook
Holiday travel	Yearly	Flights, gas and lodging
Birthdays	Yearly	Gifts and parties
Anniversary and Valentine's Day	Yearly	February
Mother's and Father's Day	Yearly	Cards and gifts
Weddings and showers you attend	Occasional	Gifts, travel, outfits

Subscriptions and memberships

Fund	How often	Notes
Warehouse club membership	Yearly	Annual fee
Roadside assistance	Yearly	Annual membership
Software and domain renewals	Yearly	Billed once a year
Streaming or app annual plans	Yearly	If you choose to pay annually

Work and taxes

Fund	How often	Notes
Tax software or tax preparer	Yearly	Paid at filing time
Estimated quarterly taxes	Quarterly	Self-employed people
Professional license renewal	Yearly or every few years	Depends on the field
Work clothes and uniforms	Yearly	Seasonal

Fun and personal

Fund	How often	Notes
Vacation	Yearly	Flights, lodging and spending money
Phone upgrade	Every few years	Save before the device dies
Hobbies and big purchases	Planned	Equipment, courses

How to choose your funds

Look at the past year. Scan your statements for charges that were not monthly. Each one is a candidate.
Check the calendar. Write each one on a calendar by month. The 2027 bill calendar has room for this.
Estimate the yearly total. Use last year's amount plus a small margin.
Divide by your paychecks. A yearly 520 across a biweekly schedule of 26 paychecks is 20 per paycheck.
Start with the three that have hurt most. Add the rest over time.

Can you combine funds?

Yes, with a trade-off. One "car" fund is simpler than five. Separate funds show exactly what each one needs. A common compromise is to group items that are due at the same time or are small. For example, a "pets" fund can combine the vet visit, license and grooming.

Where this fits in a budget

Sinking funds are one type of bucket. In Bucket Budget Planner, each of these is a bucket with an amount and how often it is due (weekly, biweekly, semi-monthly, monthly, quarterly or annual). The Buckets tab converts it to a per-week, per-paycheck, per-month and per-year figure. The Bucket Library has 154 common US buckets, and 36 of them are annual and seasonal costs such as registration, holiday gifts and tax preparation, ready to copy. The included web app also has a Sinking Funds Calculator, where you enter a goal, how much you have saved and a target date, and an Annual Bills Calendar that places yearly and quarterly bills by month.

For ideas on setting up tracking, see how to track sinking funds. For the full list of budget categories beyond sinking funds, see the budget categories list.

This guide is general information, not financial advice.