Personal finance is one of my favorite topics so naturally I’m very interested in the crossover between budgeting and buckets – the bucket budgeting system!
It’s a simple system designed for people who are adopting a budget and savings plan for the first time. The bucket budgeting system works like this:
Several savings accounts, as few as 3 or as many as 30, are opened at your bank or credit union. Each savings account represents a single monthly, yearly, or infrequent expense that needs to be budgeted for. Each of these accounts is called a “savings bucket.” Name each account after the expense that it is meant for.
These are just a few of the savings buckets an typical american might create.
