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Sinking Funds Tracker: Stop Big Bills From Wrecking Your Fortnight

A sinking fund is money you put aside, a little each payday, for a cost you know is coming. Rego, car servicing, Christmas, school uniforms, a new phone, annual subscriptions. None of these are emergencies, yet they feel like it when they land in a fortnight with no room. A sinking funds tracker turns every one of those into a small, steady amount.

How a sinking funds tracker works

Each fund is a "jar" with three numbers: the target amount, the due date, and how much is in it now. The tracker works out how much you need to add each fortnight to hit the target on time, and shows you when a jar is behind. You can keep all the money in one high-interest savings account and use the tracker to know which dollars belong to which jar, or use separate bank sub-accounts if your bank allows lots of them.

Which sinking funds should you start with?

Start with three to five. Too many at once and the fortnightly total gets overwhelming. The most useful first jars for Australian households tend to be:

• Car: rego, insurance, servicing and tyres.
• Christmas and birthdays: gifts, food and travel.
• Annual bills: insurances, memberships, subscriptions billed yearly.
• Kids: school fees, uniforms, excursions, sport.
• Home and health: repairs, dental, glasses, vet bills.

Sinking fund vs emergency fund

An emergency fund is for things you can't predict, like losing a job or a sudden medical bill. A sinking fund is for things you can predict but don't pay often. Keeping them separate stops you raiding your emergency savings for Christmas.

What to do when a jar falls behind

It happens. You can increase the fortnightly amount, push the target date (if the cost allows it), reduce the target, or move money from a jar that's ahead. The tracker makes the trade-off visible, so you're deciding on purpose rather than finding out at the checkout.

A fortnightly rhythm

On each payday, move the total sinking fund amount in one transfer, then update each jar. It takes two minutes and becomes a habit fast. When a bill arrives, pay it from the jar, mark it spent, and reset the target for next year.

Worked example

Here's a worked example. Leah is paid fortnightly and sets up five jars. Car: $2,600 a year for rego, insurance and servicing, due mostly in March, so with 10 paydays left she needs $260 a fortnight. Christmas: $900 target with 4 paydays left and $300 already saved, so $150 a fortnight. Annual bills (contents insurance and a gym membership): $780 due in July, so about $40 a fortnight. Kids: $1,100 for uniforms, shoes and school fees by late January, with 6 paydays, so about $185. Health: $500 for the dentist and glasses over the year, about $20 a fortnight. Her total is $655 a fortnight, which is more than her budget can carry until Christmas is done. So she delays the health jar for two months and trims the Christmas target to $800. After Christmas, the Christmas money moves to the car jar. The figures are illustrative, but this is the kind of trade-off a tracker makes clear.

How to do it: step by step

1. Choose 3 to 5 sinking funds and set a target and due date for each.
2. Count paydays until each due date and divide the target by that number.
3. Add the fortnightly amounts together and set up one automatic transfer on payday.
4. Update each jar after the transfer.
5. When a bill is paid, mark it spent and set next year's target.

Frequently asked questions

General information only, not financial or tax advice.