Your Buckets for the Future

Saving every single cent to pay off all your debts isnt really a good thing in the long run. Do you really want to spend the next 10 years diligently paying of your credit card bills and others, wihtout going out for a single vacation or taking the family out for a dinner every month?

Paying off your debt is very important as the interest charges alone is enough to kill your future. But I have been around enough to know that you can have a life while managing your debt.

It’s called Buckets. And it’s simple to set up.

When you get your pay check at the end of the week or end of the month, divide them into your buckets. For example, you could have the following buckets:

Myself – 10%
Rent and Utilities – 35%
Credit Card Debts – 20%
Vacation – 5%
Dinner – 5%
Misc – 25%

The 5% that you allocated monthly towards the vacation and dinner bucket will build up to a point where you can take yourself or your family to a dinner every month or two; or a vacation each year.

By allocating your funds in this manner, while still reducing your debts, allows you to have a QUALITY life. Yes, reducing debts is your main priority but this shouldn’t stop you from living a life. By not over spending and diligently filling your buckets every month, you can live a good life while being on the path of financial freedom.