Sinking Funds: How to Prepare for Life’s ‘Unexpected’ Expenses

Sep 26, 2025

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Have you ever noticed how so-called “unexpected expenses” always seem to show up at the worst time? The truth is, most of these costs aren’t surprises at all—we know cars will break down, homes will need repairs, and Christmas comes every year. The key is not to panic when they arrive but to prepare ahead of time. One simple tool for this is the sinking fund.

Scripture has much to say about preparation. Proverbs 21:20 tells us, “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.” In other words, wisdom means setting aside resources now instead of consuming everything immediately.

We also see this principle in Genesis 41, where Joseph, warned of famine, stored one-fifth of Egypt’s grain during the years of plenty. His preparation wasn’t random—it was steady and systematic. That’s exactly how sinking funds work: consistent contributions toward expenses we know will eventually arise.

What Is a Sinking Fund?

A sinking fund is money you intentionally set aside for a specific future expense. Instead of panicking at a $1,200 Christmas bill, you save $100 per month all year. Instead of reaching for a credit card when your car needs new tires, you draw from the fund you’ve been building.

This steady, disciplined approach provides freedom from debt and peace of mind when expenses come due. It’s not glamorous, but it works.

Proverbs 6:6–8 points us to the ant as an example of diligence: “Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.” The ant doesn’t wait until the snow falls to collect food—she steadily prepares in advance.

Trusting God doesn’t mean ignoring preparation. Noah trusted God, yet he still built the ark. Farmers trusted God, yet they sowed seed. Joseph trusted God, yet he stored grain. Faith and stewardship go hand in hand.

Where to Start

If you’re new to sinking funds, begin with one category. Break down the expense into monthly contributions:

Car repairs & replacement—Tires, brakes, or even a future vehicle.
Home maintenance—Roofs, furnaces, and appliances all wear out.
Medical costs—Co-pays, deductibles, or out-of-pocket expenses.
Gifts & holidays—Birthdays and Christmas come every year.
Insurance premiums & taxes—Annual or quarterly payments made manageable.

Even small amounts—like $25 per month—add up to create margin. Over time, your “storehouses” will be ready when needs arise.

In 1 Corinthians 16:2, Paul urged believers to set aside money regularly in proportion to their income to meet the church’s needs. This is essentially a spiritual sinking fund—planned, systematic stewardship for Kingdom purposes.

The goal isn’t to hoard resources. Jesus warns in Luke 12:16–21 against stockpiling for ourselves. Instead, sinking funds free us to live responsibly and bless others without fear.

Faith Expressed Through Stewardship

Choose one sinking fund today. Maybe start with Christmas: divide your expected costs into monthly pieces and begin saving now. Once you’ve built the habit, add another fund. Before long, you’ll have a system that turns stress into confidence and panic into peace.

Creating sinking funds is more than a budgeting trick—it’s a spiritual discipline. Each small deposit is an act of faith, demonstrating that you trust God by stewarding His provision wisely. Preparation doesn’t replace faith—it reflects it.

So start planning today. Build sinking funds for tomorrow. Trust God with the outcome. And remember: faith isn’t just believing God will provide when the bill arrives—it’s also honoring Him by preparing with the resources He has already placed in your hands.

On Today’s Program, Rob Answers Listener Questions:

I’m retired but still working a few days a week. Social Security is still being deducted from my paycheck—what happens to that money? Will I ever get it back?
I’m 66 and planning to retire in 10 months. My wife is also retiring soon. Together we earn about $180,000 a year. How can we best manage our retirement resources to maintain our current lifestyle?
I didn’t have financial training growing up, and now I see my kids struggling with unexpected expenses and poor money habits. Are there any books that can help shift our family’s attitude toward money?
I’ve looked into faith-based investment options, but they seem to have higher fees and less diversification compared to Vanguard or Schwab. What’s your perspective on that?

Resources Mentioned:

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