25 Sinking Fund Ideas for Australian Households (and How to Pick Your First Five)
A sinking fund is a small savings pot for a cost you know is coming but don't pay often. If you've ever been blindsided by a bill that arrives every year, a sinking fund is the cure. Here's a list of ideas that fit Australian life, and a way to pick the ones that matter most.
Car and transport
- Rego and CTP (see our NSW rego cost guide)
- Car insurance
- Servicing and tyres
- Roadside assistance
- Public transport top-ups or tolls, if lumpy
Home
- Home and contents insurance
- Council rates and water (for owners)
- Repairs and appliance replacement
- Moving costs and bond (see moving house costs)
- Furniture
Family
- Christmas
- Birthdays
- School fees, uniforms and devices
- Excursions and camps
- Kids' sport and activities
Health
- Dental
- Glasses or contacts
- Medical gap fees
- Vet bills and pet insurance
Lifestyle
- Holidays (see our holiday budget planner)
- Annual subscriptions and memberships
- Gifts for weddings and baby showers
- Clothing and shoes
- Tech: phone and laptop replacement
- Tax set-aside for side hustle income
How to pick your first five
Look back over the last 12 months. Which costs caused stress, went on a credit card or forced you to dip into savings? Those are your first funds. For most households it's car, Christmas, kids or school, annual bills and health. Start there and add others once the habit is working.
How to size each fund
For each one, write the yearly cost and when it's due. Divide by the paydays between now and then. If something is due in two months and you've saved nothing, you won't get it fully covered this time, so save what you can now and set it up properly for next year.
One account or many?
Either works. Some Australian banks let you open multiple savings sub-accounts and nickname them. If yours doesn't, keep one high-interest savings account and track how much belongs to each fund. That's exactly what the Sinking Funds Jars app is built for: one jar per fund, fortnightly amounts worked out for you, and a clear view of which jars are behind. Our sinking funds tracker guide walks through a full example.
General information only, not financial advice.
Apps for this
Sinking Funds Jars (A$19, one-off): Stop big yearly bills wrecking your fortnight.
Car & Rego Costs (A$19, one-off): Know what your car really costs a year, and save for it each payday.
FAQ
What's a good first sinking fund?
Car costs and Christmas are common first choices because they're predictable and often go on credit.
How many sinking funds should I have?
Start with three to five and add more once the habit sticks.
Can I keep all sinking funds in one account?
Yes, as long as you track how much belongs to each fund.