Sinking Funds for December: Divide the Big Bills Before They Arrive
December is expensive because several costs land at once: gifts, travel, food, and often an annual insurance or subscription renewal. A sinking fund turns those lumps into small monthly amounts.
The method
For each known irregular cost: amount ÷ months until it is due = monthly set-aside.
| Cost | Amount | Due in | Per month |
|---|---|---|---|
| Holiday gifts | $900 | 12 months | $75 |
| Car insurance (annual) | $1,200 | 12 months | $100 |
| Holiday travel | $600 | 12 months | $50 |
| Car repairs and tyres | $720 | 12 months | $60 |
Total: $285 a month, instead of $3,420 arriving in a few weeks.
Starting late
If December is only weeks away, the same formula still helps for next year, and for this year it shows the gap honestly: a $900 gift budget with $300 saved means either trimming the list or deciding in advance how the remaining $600 will be paid, rather than defaulting to a card at 20%+ interest.
Keeping it simple
One separate savings account and a sheet with one row per fund is enough. Move the monthly total on payday, and note each withdrawal against its row so the balances stay meaningful.
Free tools
- Sinking funds calculator: https://smartbudgetsheets.surge.sh/calculators/sinking-funds-calculator/?utm_source=nostr
- Christmas gift budget calculator: https://smartbudgetsheets.surge.sh/calculators/christmas-gift-budget-calculator/?utm_source=nostr
- Holiday budget calculator: https://smartbudgetsheets.surge.sh/calculators/holiday-budget-calculator/?utm_source=nostr
- Price in Work Hours, free Chrome extension that shows prices as hours of your work: https://smartbudgetsheets.surge.sh/extensions/price-in-work-hours/?utm_source=nostr
- Debt Payoff Planner, up to 8 debts (Payhip): https://payhip.com/b/PtBLU?utm_source=nostr
- 42 free budget templates, pay what you want ($0 is fine): https://smartbudgetsheet.gumroad.com/l/ngpkrb?utm_source=nostr
General information, not financial advice. Figures are rounded examples.
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