The 3‑Bucket System: A Simple Framework for Smarter Spending
Foreign welcome Cadre to this today's Wealth Wisdom Wednesday. It's Alex, mirror of Mindset, helping you flex your mind, body and soul. Doing this during lunch because tonight I'm gonna be busy.
Wealth Wisdom Wednesday is all about smarter spending. Three buckets for smarter spending: Essentials growth, self improvement and education. Ro ro612 is currently taking all online weight training instructor certification to become a personal trainer.
Three areas to do smarter spending: essentials, growth, investing. Set aside that money on a separate account for smarter spending. It'll make things a lot easier and it'll make you more strategic with your spending.
Foreign welcome Cadre to this today's Wealth Wisdom Wednesday. It's Alex, mirror of Mindset, helping you flex your mind, body and soul. Doing this during lunch because tonight I'm gonna be busy. Anya. Well, thanks so much for tuning in. Hopefully you're doing well. And tonight or this, this luncheon for wealth was in wisdom. It Wealth Wisdom Wednesday is all about smarter spending. Three buckets for smarter spending. And basically what it is, I probably talked about it in previous wealth was Wednesdays Essentials growth.
And there was one more, I already forgot it. Ro ro612 welcome to the live. Thanks for tuning in. Essentials, growth. And like, I think the other one was like self improvement. So essentials growth and self improvement. Right, so we're all spending money already in certain areas of your life, right? We all have essentials. That's food, that's shelter, that's let's say utilities. Right? Like heating our house. Maybe we pay for water, maybe we pay for, yeah, property tax, that kind of thing. If you own a house or, or like your Internet and career or business.
Our employment, well, whatever will enhance our knowledge and our technical skills on, on that side of things, for, for our line of work, what it is that we do. And speaking of furthering education, I'm currently taking all online weight training instructor certification to become a personal trainer. And that's always been a dream of mine. And I don't know why I didn't do it earlier, but I didn't. I went the finance route instead of the fitness. And those are two things that are very different, but they've always been passions of mine.
And I'm at a point in my life now where I'm like, you know what, it's now or never. I should have done earlier. But we can't go back and change time. So that's what I'm working towards. So let me know in the chat if you're working towards something. Right. Again, three, three areas to do smarter spending. Those three areas, essentials, growth, investing. Right. Got a factor in investing as an expense, right. All I use is my Apple Note. So whether you have Android or an iPhone, literally, I have my budget.
Me and my wife run a weekly budget each week, right. She gets paid one week, I get paid the other week. I literally deduct from whatever is in the account. We deduct all of our bills and then once that's deducted, then what I do is I see what amount is remaining for extracurriculars. Right. Like we said, talked about personal growth after our essentials Right. Personal growth and investing, two very important areas. Right. Once you determine what that amount is, then then crank up that amount to whatever is the most comfortable for you.
Most people can do 20%. That's a little, that's. That can be quite a bit of your after tax income. Like for your cash flow, start with like 5%. And if 5% is too. So I'm talking, let's say 5%. Set aside that money on a separate account for smarter spending. You want to invest in a course, you want to invest in changing careers, just building an emergency fund like rainy day fund or traveling. Traveling, something me and my wife do. And every time we book a trip, we have a separate account for that.
So nowadays most banks have free accounts. So take those things into consideration, kind of divide those goals. So based on what your goal is, have a separate account for that. Travel, school or education, continuing ed, whatever those goals are for it. It'll make things a lot easier and it'll make you more strategic with your spending. And so there's no financial leakage. If we have leakage, that's money that we could have redirected to something else outside of our essentials that will grow us personally, professionally, or for down the road, for our nest egg for to help retire or live how we want to live when we are at that age where we do want to leave work.
So hopefully enjoy this. Live nice and short, nice and sweet. Three buckets for smarter spending, essentials, growth and investing. Have a great rest of your Wednesday. Happy hump day. This is Alex, mirror of mindset, helping you flex my body and soul. Sa.
