The 'four bucket' budgeting method suggests allocating income into four categories: essentials, lifestyle, short-term savings, and long-term investments. This approach ensures that basic needs are covered while allowing for wealth accumulation and enjoyable spending without extensive tracking. It provides a straightforward mental framework for understanding financial flow each month. Individuals who struggle with financial control or experience money disappearance may find this method particularly beneficial for instilling better budgeting habits and enhancing overall financial decision-making.
The 'four buckets' hack splits your money into two buckets for spending (essentials and lifestyle) and two for wealth accumulation (short-term savings and long-term investments).
This makes tracking your money more intentional, and can lead to better financial decision-making.
It's a useful mental and visual framework to get you thinking about which category your spending and income falls into each month.
If you're someone who feels you're not in control of your money each month, or that you feel like your money just 'disappears', then the four buckets method is for you.
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