No, we are not building sand castles. I promise.

I’m talking about financial buckets.

What the heck is that? I’m so glad you asked.

A bucket is a budgeting term I use that helps when setting up a budget. Some buckets are mandatory, like the Four Walls. Other buckets are optional and should have a limited money allocation when paying off debt, such as the fun/entertainment bucket.

Let’s start with the Four Walls bucket. What does that mean?

Four Walls is simply the money NEEDED to stay afloat and keep the lights on.

Rent/mortgage Food Electric Water Gas

Get it? Notice Netflix is not on here. Why? Although some may disagree, it’s not necessary for survival. Think about what we tell our kids when they beg us for toys at the store.

Do you NEED that, or do you WANT it?

Once you have created this first bucket of MUST haves, you can move on to other buckets. Maybe you want a FUN bucket that includes vacation, eating out, and going to concerts.

Perhaps you want to have a SAVINGS bucket that helps you prepare for Christmas, the bathroom renovation, or even a potential upcoming car repair.

The bottom line is to create buckets that are meaningful to you and your family and be sure the four walls are getting taken care of FIRST.

Don’t forget that I created a budget bucket spreadsheet to help you get started. Check it out and get let me know if you have any questions!