No matter who you are, you can do better in regards to saving your money. Whether you have a good job or you are struggling to get by, the Bucket Method may help you take more control over your saving behaviour. The concept in a nutshell is you evaluate how much you have, and how much you need to spend and separate these amounts into set categories. The Categories are:

Expenses Bucket 

The first bucket is a necessity bucket. This is what you need to pay for your living expenses day to day, your rent, food cost, travel costs, electricity and gas and TV subscription. Each month put 60 percent of your total earnings into this bucket.

Emergency Bucket 

The second bucket is an emergency bucket. This money will only be used in an emergency. You cannot predict when you will have an emergency but you can be prepared if one should happen. You will put 10 Percent of your monthly income in this bucket.

Investment Bucket 

The third bucket is an investment bucket. This money will be used to make more money, it can be used for investments, shares or any scheme where their is a potential to increase your invested amount. You will put 10 Percent of your monthly income in this bucket.

Learning Bucket 

The fourth bucket is a learning bucket. This money will be used to invest in yourself. You can use it to develop skills or use opportunities that will lead to a higher income down the road. You will put 10 Percent of your monthly income in this bucket.

Fun Bucket 

The fourth bucket is a fun bucket. This money will be used for fun activities, it can't all be work related and this is your chance to let loose. This is guilt free money, as you have already used the rest of your money wisely. You will put 10 Percent of your monthly income in this bucket.

Go to the 5 Bucket Calculator