Penny KiddMoney Life Coach, Pennywise Coaching · Changing Financial Lives So You Can Keep More Money & Stress Less | Speaker | Author | Financial Coach

What the heck is a sinking fund? #pennywisecoaching #budgeting #moneytips

15 Sept 2025 · 1 min

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In this brief coaching video, Penny of PennyWays Coaching explains the concept of a sinking fund—a budgeting tool where you regularly set aside small amounts of money, either each paycheck or irregularly, to cover future irregular or planned expenses. She provides concrete examples such as holiday gifts, home repairs, travel, car license plates, roof or water‑heater replacements, and even discretionary purchases like a big TV. By allocating money gradually, a sinking fund smooths cash flow, prevents budget strain, and ensures you have the funds when the expense arises. Penny encourages viewers who lack sinking funds to start one and invites anyone needing more guidance to contact her for personalized coaching.

Chapters

¡Hey! It's Penny with PennyWays Coaching. Have you ever heard me or someone else talk about a sinking fund? A sinking fund is basically a way to set aside a little bit, maybe every paycheck or irregularly, so that you have enough when that thing comes along. So you might consider having a sinking fund for Christmas or for home repairs or for travel or for car license plates. Boy, there are countless things that happen irregularly. Could be a roof on your house or a water heater, but it also might be a big TV or something you want to get. So putting aside a little bit at a time helps cash flow even out and not struggle with your budget so much. So if you don't have sinking funds, take a look at those. If you need more information, reach out to me. Be wise.