• Budget structure guidelines | learn how to make it & use the free template. Introduction to Buckets This is a quick introduction to the bucket system. The following posts will help you understand each bucket and create a nice Budget structure guidelines. What is a Bucket? A bucket is an amount set aside that will spend on something specific. You already pay your buckets, but you do it without knowing how much is going into them. Examples of buckets would be Cell Phone Bill, Television Service, Mortgage or Rent, Food, etc. Simply said, a bucket is an expense. I will show you the Budget structure guidelines. how you can do that properly for you. Why use buckets instead of calling them expenses? Expenses are a set amount that you pay each interval they are due. For example, you may receive a mobile phone bill for $100 but in one year you know you are going to need or want a new phone. Your current practice is that you just keep putting $100 in the bucket and it goes away. What happens though if you start putting $150 into that bucket for the next year instead of $100? Well, at the end of the year you will have $600 to buy that new phone you wanted. Your monthly device payment drops off of your account so instead of paying $100 for the next two to three years, you are now paying $75 a month. Over two years of $25 savings you now have another $600. If you kept putting $100 into that bucket instead of $75 you would be able to upgrade your phone every two years without a contract, and if an emergency arose you would have cash on hand instead of a monthly payment on your device. Two Types of Buckets There are two types of buckets, and I will get deep into each of them in the next posts, but just to quickly give an overview. Capped Buckets: A capped bucket means that you put the same amount in every month, and pay the same amount out every month. An example of this would be your monthly Netflix payment. What purpose would you have to save more in that bucket? I can
  • Sample Budget Template with Introduction for Basic Beginners No Two Budget Templates Are The Same When I was getting ready to budget for my first time I looked for a sample budget template to make sure that I was doing things right. What I quickly realized was that every single sample budget template out there was unique and different! There weren
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