| Having easy finance expense categories can make it | | | | new wealth) |
| a LOT easier for you to stick with your personal | | | | 2. Living expenses |
| budgeting commitment long-term. You know how it is | | | | 3. Contributions (includes charitable giving) |
| when you try to put together a budgeting system, | | | | 4. Reserve (building an emergency and special |
| but you have 37 expense categories to look after. | | | | purchase fund) |
| Who can live their life that way on a consistent basis | | | | This is backwards to the way that the majority of |
| without deviating from the system? It is almost | | | | people manage their personal finance expense |
| impossible, and that is why the four bucket system | | | | categories. Most people start out by paying their |
| keeps it simple when it comes to managing your | | | | living expenses and investing what is left over...this is |
| expense categories. | | | | a surefire way to make sure that you never start |
| Introducing the Four Bucket Personal Finance System | | | | investing. |
| When you think about it, there are only a few major | | | | There is an old saying that goes: "Poor people are |
| categories when it comes to budgeting: living | | | | poor because they spend their money and invest |
| expenses, investing, reserve spending and gift giving. | | | | what's left. Rich people are rich because they invest |
| Everything fits into one of these four categories or | | | | their money first and then spend what's left." |
| "buckets," and so keeping these as your expense | | | | If you apply this principle in using the four bucket |
| categories will make it much easier for you to stick | | | | personal finance system, you will never miss the |
| with your commitment. How do you get started in | | | | invested money. You will adapt to pay your living |
| using the four bucket personal finance system? | | | | expenses without it, and this will put you on the road |
| Start With Your Priorities | | | | to building wealth and financial security. |
| The first step to using the four bucket system is | | | | So sit down with these four personal finance |
| arranging the four categories according to your | | | | expense categories and apply the four bucket |
| personal money management principles. For example, | | | | personal finance system to managing your income |
| placing them in this order has proven to be very | | | | and outgo. For best results, put "Pay Yourself First" |
| effective for people who want to build personal | | | | and start making your wealth building and financial |
| wealth: | | | | security the number one priority. |
| 1. "Pay Yourself First" (accumulating capital to create | | | | |