2026 Financial Resolution
January 1, 2026
I'm not big on New Year's Resolutions. Instead I prefer to make life course corrections as necessary. But this year is different. This year I have a concrete financial goal that will start the first week of January: Build up my sinking fund.
Sinking Fund
Sinking fund? Sounds dire, right? I was a little jarred too when I first heard the term but it simply means: a fund for future expenses like vacations, home repairs, car repairs etc. In my case this fund would be for future financial expenses like car and home repairs, but mostly home repairs. I currently live in a house that is close to 100 years old. While I love the uniqueness of our home, it feels like repairs big and small are always lurking around the corner. At age 60, I know myself. I'm happiest when I am prepared for financial surprises.
I have been saving $600 a month for home and car repairs. But the truth is I probably spend more than that on these expenses each year. Recent home improvements and repairs have incluced: new kitchen sink, new bathroom faucets, solar panels, window coverings and a plumbing and electrical repair. At times I have dipped into other savings to finance such expenses (see solar panels).
My podcast partner fiduciary planner Scott Dauenhauer, CFP mentioned recently that he saves $1,200 a month for his sinking fund. Yikes, I'm $600 a month behind. And he lives in a newer home. So in January I will save $650 in my sinking fund. Next month, I will increase this by $50. My goal is to increase this amount each month by $50 until I hit $1,200. Actually I might just keep going until I surpass Scott. Don't tell him.
Stay wise and well and best of luck building your sinking fund.
