Sinking funds turn predictable irregular expenses into small monthly savings goals, so bills like car insurance and holidays never feel like emergencies.

List every irregular cost, divide its annual total by twelve, and save that amount monthly in a labelled pot for that purpose.

Start with car, home, gifts, and subscriptions, automate transfers on payday, and track balances in sub-accounts or a spreadsheet.

Sinking funds are not an emergency fund: they cover expected costs, while the emergency fund covers true surprises like job loss.

Review funds twice a year, avoid over-fragmenting into dozens of tiny pots, and start with just three funds this month.