How Sinking Funds Finally Made Me Feel Stable With My Money
The headlights on my car went out this week, and old me would have panicked, swiped a credit card (if I had the available credit), and spent the rest of the day stressed.
This time, I felt no pressure at all.
I used $250 from my car maintenance sinking fund, got everything fixed, and kept it moving.
That moment felt like a turning point.
For the first time in a long time, something went wrong and it did not derail my entire life. I handled it, paid for it, and kept my peace.
I still want to build that sinking fund to $1,000 so I can take care of brakes and the rest of my maintenance, but this week showed me something important.
The system is working.
And after recently filing for bankruptcy, that feels like a bigger win than I can explain.
I will start a part-time job soon, but I didn’t wait for more income to establish these habits. I want my foundation to be strong before the money grows, because if there is no system in place, more money gives you more ways to repeat old patterns.
That moment got me thinking about sinking funds and why they are the first strategy I recommend when people want to feel less stressed about their money.
What is a sinking fund?
A sinking fund is simply a small savings bucket for things you know are coming.
Think of it like a personalized safety net you build slowly, over time, so that when a predictable expense shows up, you already have money set aside for it.
Includes things like:
car repairs
gifts and holidays
dental work
annual fees
travel
home essentials
personal needs
These are not emergencies. They happen every year. The problem is that many of us wait until the last minute and then scramble. A sinking fund solves that by letting you prepare in advance, even if the deposits are small.
Why I stopped waiting for the “perfect moment”
I used to tell myself I would start sinking funds once I had more income or once my main goals were handled.
Sounds logical, but it kept me stuck.
Life kept popping up with gifts, outings, and little things I was not prepared for. Every time I gained progress, something small came along and knocked me back down.
I finally realized I didn’t need more money to start sinking funds. I just needed to start small.
How I’m doing it now
With my current budget, I simplify everything:
$10 a check to gifts
$10 a check to entertainment
More to travel once my part-time job starts (I need $2,000 for my mom’s birthday trip to London next year)
Car maintenance is the priority until repairs are done, then it switches to $50 a month
Christmas starts in September 2026, maybe earlier if things line up
These amounts are small on purpose.
They keep me from dipping into money that is meant for bigger goals. They protect my progress instead of slowing it down. They also give me something I never had before: peace of mind.
The most significant shift for me has been emotional.
For the first time in my adult life, money feels like something I can manage instead of something I have to recover from. Paying for those headlights without drama showed me that I am building real stability, not the kind that only looks good on paper.
My budget isn’t perfect. My income isn’t huge. However, my approach to handling money is different.
And that difference is everything.
If you want to start, here’s what I recommend…
Start tiny.
Start now.
You can start with just one category.
Here’s a simple way to begin:
Pick one predictable expense that stresses you out
Create a sinking fund just for that
Put $10 per paycheck into it (increase this every few checks by $10 more dollars if you can)
Do not touch it until the expense arrives
Celebrate the moment you use it without stress
You do not need five sinking funds to get started. You only need one.
If you are in a season where your goals feel slow or your progress feels too small to matter, please hear this….The small wins count.
The small shifts are why the big wins become possible later.
Let your future self breathe.
