Personal Finance

Simplified budgeting: the 3 buckets method

·4 min read

If you are tired of complicated spreadsheets and budgeting apps that eat up all your time, the 3 buckets method is for you.

What is the 3 buckets method?

It's simple: you split every paycheck into 3 accounts (buckets) with different purposes.

Bucket 1: Essential expenses (50-60%)

Everything you MUST pay goes here:

  • Rent/mortgage
  • Utilities
  • Food
  • Transport
  • Insurance
  • Bucket 2: Financial freedom (20-30%)

    Money for your future:

  • Emergency fund
  • Investments
  • Retirement
  • Big goals (house, car)
  • Bucket 3: Fun (20%)

    Money for living now:

  • Going out, restaurants
  • Clothes, shopping
  • Hobbies
  • Subscriptions (Netflix, Spotify)
  • How to implement it in practice

  • **Open 3 separate bank accounts** (or sub-accounts)
  • **Set up automatic transfers** on payday
  • **Spend from each account** only for its purpose
  • Why does it work?

  • **Simplicity** — You don't have to track every cent
  • **Automation** — Decisions are made once
  • **No guilt** — Fun money is for fun, no regrets
  • Try it for a month and see the difference!

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