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Money Buckets

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WHAT IS A MONEY BUCKET?

It’s simply an account where you keep your money until you are ready to use it. That could be a money market account, investment account, retirement account or a savings account which is the example we’re using here.

HOW DOES IT WORK?

Using one main savings account, you can easily create many different buckets that you designate for all the different things you want to save for, such as:

o   Emergency fund bucket

o   Professional development bucket

o   Short-term savings bucket

o   Dream vacation bucket

o   New car bucket.

o   College education bucket.

Whenever you put money into your savings account, you can designate which bucket that amount will go into. You can also set benchmark dates to indicate when you want that bucket to be filled by.

BENEFITS OF THIS SYSTEM:

–       Keeps you organized.

–       It makes saving exciting and more fun.

–       You can watch your buckets filling up and visually monitor your progress!

RECOMMENDATION:

I recommend capitalone360 for online banking. They have great service and they currently offer one of the best interest rates in the market.  Find a financial institution that works best for you but, for your convenience, I’m providing my referral link. FULL DISCLOSURE: If you use this link, there’s a chance I could receive a small referral fee! Also, I am not a financial advisor. I’m simply recommending tools that have worked for me and my clients for years. 

http://bit.ly/save4overflow

This content comes from chapter 6 of How to Embrace Your Inner Millionaire.

www.myinnermillionaire.com


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