Sinking Funds for Planned Expenses

Annual insurance, a laptop replacement, a holiday: some expenses arrive occasionally but still belong in your plan. Spendly sinking funds help you prepare for them gradually.

Give a future expense a place today

Create a fund for an expense, set the amount you want to cover, and record your contributions. The progress view makes it easier to see how much is ready and how much remains.

Instead of treating an annual bill as a surprise in one month, you can give it a place in the months leading up to it. A target of $1,200 over twelve months, for example, suggests a planning amount of $100 per month. That is an illustration; your own timing and contributions determine your fund.

Match the fund to the actual cost

Each sinking fund uses its own currency. If a future expense will be paid in euros, you can plan for that euro amount while keeping the rest of your finances in view through multi-currency accounts.

Use separate funds for costs with different purposes or deadlines. Clear names help you distinguish money prepared for a bill from money available for something else.

Follow the progress and settle the expense

Review your fund as contributions build. When the planned expense arrives, settle the fund to reflect its use and keep your planning records current.

Your budget helps create room for contributions, and your cash flow forecast shows how your wider plan affects available balances.

Sinking funds and savings goals

Sinking funds prepare for expenses you expect to pay. Savings goals help you work toward broader milestones. Use the tool whose purpose makes the plan easiest to maintain, and keep your targets grounded in the money you can contribute.