Best Buckets To Help Budget

Monthly Expenses

Your monthly expenses are all the expenses you pay every single month. These typically include your insurance, cell phone bill, utilities, gas, groceries, transportation, and schooling. Your monthly expense bucket needs to contain all the money that goes into this fund every month. Unfortunately, it’s not always easy to figure out precisely what you owe if certain expenses change monthly. For example, you might spend a little more than usual on gas one month or more on groceries the next. Your utility bill probably changes regularly, too. Do your best to average this out by keeping track of where your money is going by averaging out the amounts you’ve spent the past few months. It might take a month or two to get this account exactly as you need it give or take a few dollars, but you will get there. Now you’re only using this account to pay for your monthly expenses.

Continue reading to learn how to handle housing expenses and a mortgage using the bucket technique.