5 Steps to Create a Savings Bucket System (never be stressed about big bills again!) That Is Separate From Emergency Fund + Investments

A savings bucket is a savings account with a purpose. Unlike the emergency fund and investments, savings buckets take into account your larger annual expenses and divide the cost so that you can budget for them monthly. This system is when you know you’re next level. Rather than just setting money aside without a plan, we’re going to have a specific plan. 

This system is so awesome because when a big bill comes, you’re not wondering how you’re going to pay for it or reaching for a credit card. Instead, you’re confident you have the money for it and not stressed at all! Plus, you do not have to go further into debt because you’re so organized! One of our clients recently text us about this system:

“Had to get new tires today (they were old but went in for a nail in one, not to replace) and it was really cool to have $800 ready to go in my car maintenance fund!! Even the tire guy seemed a little nervous to tell me I needed tires. I think he's used to people being unprepared. He sounded a tiny bit surprised when I said "sure, go for it!"

Here are the steps to set up your savings buckets:

  1. Brainstorm every savings bucket you have in a year. These are things you spend a lot of money on each year or can expect to. Use the list below for inspiration.
  2. Calculate how much you need for each of those funds.
  3. Divide that savings bucket amount by 12 (or the amount of months you have left to save for it).
  4. Put those numbers in your monthly budget!
  5. Be relieved when you have money for that emergency pet visit or new tires!

Examples of savings buckets (also called sinking funds):

  • Car repairs
  • Pet expenses
  • Christmas
  • Vacation
  • Home repairs
  • Taxes
  • Medical / Dental / Vision expenses
  • Prescriptions
  • Insurance premiums (life, auto, property)
  • HOA fees
  • Annual memberships
  • Furniture
  • Home remodel
  • Back to school / clothing
  • Tuition
  • Car replacement
  • Wedding
  • Moving
  • New Baby

144 | Budget School Series (Pt. 5): Saving Money 101 plus Building Emergency Funds & Investing Wisely Financial Coaching for Women: How To Budget, Manage Money, Pay Off Debt, Save Money + Paycheck Plans


“Embrace your inner nerd. Just go there.”

“You’re going to set a budget for Christmas. It’s not going to be like, ‘We’re going to spend whatever we want.’ You can be as generous as you want to and as your budget allows, but you’re going to have a budget.”

“People forget pets have their annual check up and annual medications. It’s not cheap!”

“You’re going to be so excited because you’re going to be look at your accounts and know you have so much money saved up for everything that is going to come your way.”

“When her paychecks go in, they fund the bills account and it all spreads out because they’re out of debt. So, it goes to her kids fund, her home repair fund, it goes to all of her funds. So, all she has to do is pull up her account and look and see exactly how much money she has. There’s no guessing game.”

“We have to acknowledge that we’re a more digital culture now. We can use that to our advantage to manage our budget.”

“We know this is a very different way to do things. But it’s very organized and it really works.”

Book Your Free Call Now!

We are excited to create the time & space to talk to you about your current money situation. This is a free, no-obligation call where we can answer questions you may have and maybe find some quick wins for your budget.

What do you have to lose?

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