Sinking Funds Explained: How Solo Mums Can Plan Ahead Without Stress
Why Planning Ahead Matters as a Solo Mum
If you’re a solo mum, you’ll know this feeling all too well. A school letter comes home asking for money, the car starts making a strange noise, or Christmas suddenly feels like it’s right around the corner — and your stomach just drops. Even when you’re careful with money, it can feel like expenses appear out of nowhere and knock everything off balance. I know it knocks me off balance.
In a previous blog post, I talked about the importance of having an emergency fund which is money set aside for those unexpected, urgent moments that life loves to throw at us. Things like a sudden car breakdown or an appliance giving up at the worst possible time. Emergency funds are a vital safety net, especially when you’re managing everything on your own.
But here’s the thing: not all money stresses are true emergencies, some we can prepare for but think we have plenty of time and all of a sudden it approaches and we are juggling our funds yet again.
Many of the costs that cause panic — Christmas, birthdays, school uniforms, car insurance all are actually predictable. We know they’re coming… yet they still manage to feel like a crisis every single time. And that’s usually because we haven’t planned for them in advance.
That’s where sinking funds come in.
Sinking funds have been really helpful the last few years and have made these events feel a little easier. Sinking funds are one of the simplest and most effective ways to take control of your money as a solo mum. They help you plan ahead for known expenses, spread the cost over time, and stop those “expected surprises” from wiping out your emergency fund or sending you into stress mode.
In this post, I’ll explain exactly what sinking funds are, how they work, and how they fit perfectly alongside your emergency fund. As always here at Solo Mum to One, this is about realistic budgeting, no judgement, and doing the best you can with what you have — one step at a time, if all you can manage is one sinking fund to start with, that perfect one sinking fund is better than no sinking fund.
What Is a Sinking Fund?
For a long time, I honestly thought I was “bad with money”. Every time something came up — a school trip, new shoes, car costs — I felt stressed and caught off guard. I’d think, “Why did I not plan for this when I knew it was coming?” I knew it was coming and I used to beat myself up a lot about it.
The truth was, I wasn’t bad with money at all. I just didn’t have a system or a sinking fund.
A sinking fund is simply money you set aside regularly for expenses you know are coming. Not emergencies. Not surprises. Just those predictable costs that don’t happen every month but always seem to cause panic when they arrive. Things we later future you worry about and then future you turn up.
These things include things like:
Christmas
Birthdays
School uniforms
Car insurance or MOT
Vet bills
I used to treat these as emergencies not because they were but because I hadn’t planned for them. So they’d either wipe out what little savings I had, go on a credit card, or leave me feeling guilty and overwhelmed because maybe I promised my son I can no longer give him. Once I learned about sinking funds and started using sinking funds, everything changed — not because I suddenly had loads of money, but because I was spreading the cost over time.
Instead of Christmas being one huge, stressful expense in December, it became small, manageable amounts throughout the year. Instead of dreading the MOT, I already had money waiting for it. Even if it wasn’t all the money I would need the amount I had helped take a little pressure off.
That’s all a sinking fund really is: giving you a bit of help.
You don’t need lots of separate accounts, fancy apps, or big amounts of spare cash. Even £5 or £10 a month into a sinking fund counts. What matters is intention — choosing to plan ahead so money doesn’t constantly feel like it’s slipping through your fingers.
Sinking funds turn “I can’t afford this” into “I’ve already planned for this” — and that shift is powerful, especially when you’re doing this on your own. Also one thing it has helped me especially at Christmas and birthday is to budget more with the money I have saved.
Sinking Funds vs Emergency Funds: Why You Need Both
One of the biggest money mistakes I see (and one I made myself) is using an emergency fund for everything. When you don’t have sinking funds, every expense feels like an emergency — even when it really isn’t.
An emergency fund is there for the unexpected and urgent. The things you genuinely couldn’t plan for. A sudden car breakdown, the boiler giving up without warning, or an unexpected bill that needs dealing with straight away. These are the moments your emergency fund is meant to protect you from. Remember to read my blog post - Emergency fund
Sinking funds are different.
Sinking funds are for expenses you know are coming, even if you don’t know the exact date. Christmas happens every year. School uniforms need replacing. Cars need MOTs and servicing. These costs aren’t surprises — they’re just irregular and ones we never seem to plan ahead for.
Here’s a simple way to think about it:
Car breaks down unexpectedly → Emergency fund
Car MOT or insurance renewal → Sinking fund
Boiler suddenly stops working → Emergency fund
Annual boiler service → Sinking fund
When you don’t separate the two, your emergency fund never gets a chance to grow. It’s constantly being dipped into for things that should have been planned for, which can leave you feeling like you’re always starting from scratch. I could never grow my emergency fund as I would always use it for these small things.
This is why sinking funds are so important — they protect your emergency fund and allow it to grow.
Instead of panicking when a known expense pops up, you already have money waiting for it. And when a real emergency does happen, your emergency fund is still there doing its job.
Together, sinking funds and emergency funds create a calmer, more stable money system. One helps you plan ahead, the other catches you when life throws something completely unexpected your way. And when you’re managing everything as a solo mum, that peace of mind is priceless.
Common Sinking Funds for Solo Mums
One of the most overwhelming things about sinking funds is thinking you need loads of them straight away. You don’t. This isn’t about creating a perfect system — it’s about choosing sinking funds that make your life easier. I have said it before if all you can manage right now is one sinking fund then that is where you start.
Here are some of the most common sinking funds for solo mums to give you an idea of where to start. Think of this as a menu, not a checklist. You can pick one or two to start with and add more over time if and when it feels manageable to you and your family.
Everyday Family Life
These are the expenses that pop up throughout the year and always seem to arrive at the worst time:
School trips and activities
Non-uniform days
Clubs, lessons, or after-school activities
School shoes, coats, and uniform replacements
Having a small sinking fund for school costs can be a huge stress reliever, especially when you’re managing everything alone and I don’t know about you but my son’s school is always asking for money for something or at least it feels that way.
Home and Transport
These costs are predictable but often expensive, which is why they cause so much stress:
Car insurance renewals
MOTs and servicing
Tyres and general car maintenance
Home repairs and maintenance
Replacing appliances when they wear out
Even setting aside a small amount each month can stop these costs from turning into emergencies and sometimes these types of things can always be a little pricey.
Birthdays, Christmas, and Celebrations
These are often the biggest emotional money pressures:
Your child’s birthday
Family birthdays
Christmas
Special occasions and celebrations
Planning ahead doesn’t take the joy out of these moments — it actually gives you more freedom to enjoy them without guilt or panic and we all have had that “Mum guilt” feeling.
Health, Wellbeing, and Pets
These expenses can be easy to overlook until they’re suddenly urgent:
Dentist and optician costs
Glasses or contact lenses
Prescriptions
Vet bills or pet care
These sinking funds don’t need to be large — they just need to exist.
The most important thing to remember is this: you don’t need a sinking fund for everything. Start with the one that causes you the most stress. When that pressure lifts, you’ll naturally feel more confident adding another.
Remember this is about progress, not perfection — and doing what works for you and your family.As a solo mum, I know just how heavy the financial responsibility can feel. Every bill, every food shop, every unexpected cost — it all comes down to you. There isn’t a second income to soften the blow if something goes wrong, nobody to lean on and that can be really overwhelming.
Before I built an emergency fund, even small surprises felt huge. A letter through the door, an email from school or a strange noise from the car could instantly fill me with anxiety. Not because I was bad with money, but because there was no buffer. If something unexpected happened, I knew it would mean stress, scrambling, juggling money or relying on credit.
That’s why emergency funds became so important to me.
Having an emergency fund doesn’t mean life stops throwing challenges your way they still turn up, however by having an emergency fund it just means you’re not facing them completely unprotected. Even a small amount set aside can stop a situation from turning into a full-blown crisis.
I felt I needed to feel I had a buffer in case anything was to go wrong. This wasn’t about hitting some perfect savings goal. It was about feeling safer. Knowing I had some money set aside if I ever needed it in an emergency and one I could continue to build. It was about knowing that if something happened, I could handle it without everything else falling apart or having sleepless nights doing stress maths.
I know how easily solo mums put themselves last. But an emergency fund isn’t selfish — it’s practical. It’s a way of looking after yourself, your children and your life moving as smoothly as possible when these life events surprise you and you can keep looking after your child.
You don’t need to have loads saved to feel the benefit. Just having a small amount to start and knowing you’re building something, even slowly, can lift a huge weight off your shoulders.
And that feeling — that little bit of calm and control — is exactly why every solo mum deserves to build an emergency fund.
How to Work Out How Much to Put Into a Sinking Fund
This is usually the part where people feel stuck. I know I did and I had to overcome a lot of mental blocks as I was fearful of money, but I promise it’s much simpler than it sounds. You don’t need to be “good at maths” or get the numbers perfect — you just need a rough plan.
Start by choosing one sinking fund. Pick the expense that causes you the most stress right now. It might be Christmas, car costs, or school expenses, there is no right or wrong choice, it's about what is going to ease the pressure off you.
Next, write down the total amount you’ll need. If you’re not sure of the exact figure, make your best guess. This isn’t about precision — it’s about planning, each year you will be able to get a better estimate.
Next, think about when you’ll need the money.
For example:
Christmas in 12 months
Car insurance renewal in 10 months
School uniforms in 6 months
Now divide the total cost by the number of months until it’s due.
So if Christmas usually costs around £600:
£600 ÷ 12 months = £50 per month
If your car insurance is £240 (we can all dream) and due in 12 months:
£240 ÷ 12 months = £20 per month
That monthly amount is what you aim to put into your sinking fund.
If those numbers feel too high, that’s okay. You’re not failing — you’re being realistic. You can:
Reduce the total amount
Start later in the year
Put in what you can and adjust over time
Even £5 or £10 a month makes a difference. A partially funded sinking fund is still better than none at all. The above is just an example. When I started I just put in what I could lose change I had or if I sold anything I would add it to a sinking fund.
The goal isn’t to be perfect. The goal is to take pressure off future you. Each small contribution is you choosing a calmer, more controlled approach to money — and that really matters.
Where to Keep Your Sinking Funds
Once you’ve decided what you’re saving for, the next question is where to actually keep your sinking funds. The good news? There’s no “right” way — the best option is the one that feels easiest for you to stick to.
Some solo mums like having separate savings pots, either through their bank or a savings app. Each pot is labelled for a specific sinking fund, like Christmas, car costs, or school expenses. This makes it really clear what the money is for and helps avoid accidentally spending it on something else. Check if your bank has savings pots. Most online banks do them now, this way you can transfer money across and split across multiple pots if you want too.
Others prefer having one savings account and keeping track of sinking funds on paper, in a notes app, or in a simple spreadsheet. This works well if you like things straightforward and don’t want lots of different accounts to manage.
If you’re someone who likes physically seeing money, cash envelopes can also work. You might have envelopes for things like birthdays or Christmas and add to them whenever you can. This is a good method if you have spare change you can add it to one of your envelopes. This method isn’t for everyone, but for some people it makes budgeting feel more real and manageable.
Whichever option you choose, the key thing is this:
Your sinking funds should be kept separate from your emergency fund.
Your emergency fund is there for true emergencies — not planned expenses. Keeping them apart helps you use each one for the job it’s meant to do and stops money stress creeping back in.
Sinking funds are active savings. They’re meant to be used when the time comes — and that’s a good thing. Using a sinking fund isn’t “failing at saving”, it’s proof that your plan is working and it really does ease so much pressure.
What If You’re Already Struggling With Money?
If you’re reading this and thinking, “This sounds great, but I can barely get through the month as it is,” I want you to know you’re not alone, and you’re not doing anything wrong. It is hard when you struggle to even have any spare change.
Being a solo mum often means carrying the full weight of the household finances on your own and that is extreme pressure especially during a cost-of-living crisis, with very little room to breathe. When money is tight, planning ahead can feel impossible, especially if you’re already juggling bills, food shopping, and day-to-day survival.
If things are really tight right now, start with one tiny sinking fund. Pick the expense that causes you the most anxiety — maybe Christmas or school costs — and begin with whatever feels manageable. Even £1 or £2 when you can is a step in the right direction.
You can also start by:
Putting money aside irregularly rather than monthly
Using cashback, refunds, or spare change
Pausing or adjusting sinking funds during harder months
There are no set rules that say you have to save every month or save the same amount. Life changes, income changes, and your budget is allowed to change too. It is your lifestyle and you can make the rules and adjust the rules as life creeps in sometimes. The most important thing is to get back on track when life settles again.
It is also important to be kind to yourself. Budgeting as a solo mum isn’t about perfection — it’s about doing the best you can with the resources you have right now. Sinking funds are a tool to support you, not another thing to feel guilty about.
Even starting small is you choosing stability and care for your future self — and that matters more than you realise.
How Sinking Funds Help You Feel More in Control
One of the biggest benefits of sinking funds isn’t actually about the money — it’s about how they make you feel. It’s about helping you gain more confidence over money and I wrote another blog post on “How to take control of your finances” which you can read next.
When you have sinking funds in place, even small ones, that constant background worry starts to quieten down. You’re no longer bracing yourself for the next expense or feeling that jolt of panic when something comes up. Instead of thinking, “How am I going to afford this?” you can think, “I’ve already planned for this.”
That shift is powerful.
Sinking funds reduce the mental load that so many solo mums carry. Fewer money surprises mean fewer sleepless nights, fewer stressful decisions, and less guilt when you need to spend money on your child or yourself. You’re not being irresponsible — you’re using money you intentionally set aside.
They also build confidence. Every time you use a sinking fund exactly as planned, you’re proving to yourself that you can manage money, even when things are tight. That confidence grows over time and makes budgeting feel less scary and much more empowering.
For solo mums especially, sinking funds offer something really valuable: a sense of stability. Life will always throw things at us, but having a plan — even a simple one — helps you feel less reactive and more in control.
And that feeling? It’s worth far more than the numbers in your bank account.
Final Thoughts: Bringing It Altogether
You don’t need to have everything figured out to be “good with money”. You just need a plan that works for real life — your real life.
Your emergency fund is your safety net. It’s there for the truly unexpected moments when life throws you a curve ball. Your sinking funds are your way of planning ahead for the things you know are coming, so they don’t turn into constant money emergencies. Together, they create a calmer, more balanced approach to managing money as a solo mum.
If you haven’t already, I’d really encourage you to read my post on emergency funds, as the two go hand in hand. You’re doing an incredible job managing everything on your own. This isn’t about being perfect — it’s about making things a little easier, one step at a time.
Until next time
Rachel
Written by: Rachel Cole