Twelve Envelopes

Two adults and a dog in Spokane, Washington, publishing the household budget one month at a time. Twelve envelopes, one spreadsheet, no advice for anybody else.

The sinking funds

$458 a month across eight pots. Balances as at Aug. 31, 2026.

Eight bills that arrive once a year, or once in a while, divided by twelve and set aside monthly. They appear on every issue page as a single $458 line, because from the twelve envelopes' point of view that is what they are: one fixed outgoing that never varies. The interesting part is underneath.

Annual cost, monthly twelfth, and what is in the pot today
Fund Per year Per month Balance
Auto insurance 1,062 89 534
Renters insurance 228 19 114
Car maintenance and tires 1,320 110 186
Registration and tabs 186 16 96
Dental, no coverage 780 65 325
Holidays 600 50 400
Travel, one trip 900 75 525
Dog, annual 408 34 68
Eight funds 5,484 458 2,248

Where the money physically is

One savings account, one balance, and eight numbers in the spreadsheet that add up to it. We do not open an account per fund. The reconciliation on the first Sunday checks that the eight numbers still sum to what the bank says, and in sixteen months it has been out twice, both times by a transfer that had not cleared.

Notes on each

The balances are uneven by design, not by neglect. Holidays is at $400 in August because it fills all year and empties in one month; car maintenance is at $186 because it emptied in July. A sinking fund that always looks healthy is one you are over‑funding.

The two we do not have

There is no fund for a new car, discussed on the car page, and no fund for the vet beyond the $34 annual pot, which August demonstrated the limits of. The argument for adding a pet emergency fund is obvious and the argument against is that it would have to come out of the $1,100 savings transfer, and we would rather take a $214 hit twice a decade than move the transfer. That may be the wrong call. It is at least a call, made on purpose, and it is written down.