Bucket Budgeting is a way of setting up your bank accounts in a way that allows you to pay your bills on time, save money each month, and have spending money for buying what you want. Sound like a plan? Follow the steps below to set up your Bucket Budget.
Grab four highlighters. Go through your budget line by line and highlight your fixed expenses one color, your flexible expenses another, your periodic expenses another, and your fun money another.
Pull out your calculator and total each of the four categories in your budget. The total for your fixed expenses category will tell you how much money you need to have in your fixed expenses bank account each month in order for all your bills to be paid. Your total for your flexible expenses is how much money you need in your flexible expenses account to meet those expenses…you get the idea!
Open one checking account for fixed expenses, one account for flexible expenses, one account for periodic expenses, and one account for fun money.
On payday, deposit all of your income into your fixed expenses account. Set up automatic transfers to transfer the amount you need in your flexible expenses account, periodic expenses account, and fun money account.
