Whether you’re a total beginner or a spreadsheet boss, we’ve got budgeting tips and techniques to guide you in setting budget goals and sticking to them. 

Ever heard of bucket budgeting? 

Bucket budgeting is a modern version of envelope budgeting. When your parents got paid in the old days, they would put their cash in different envelopes to cover different expenses.
Now enter the digital age, and instead of stashing cash in envelopes (not very secure), budgeting legends are stashing their cash in multiple transaction accounts like SpendME, with each account dedicated to a different expense such as rent, groceries and bills, and savings. If you wanted to stash some cash for a rainy day, you could use a SaveME savings account. Or those saving for their next big thing might opt for a HomeME savings account.

Here’s how you can try bucket budgeting: 

Pick your bucket categories. 

Once you’ve looked at your incomings vs outgoings and know what you’re spending and earning, your next step is deciding how many buckets you need and what they are. Here are some good examples:

Bills: rent or mortgage repayments, utility bills and repaying any debts.
Everyday: groceries, public transport, petrol, etc.
Spend: anything from Friday night drinks, to date night, or those shoes you’ve been eyeing up.

Savings: this bucket will cover any emergencies and also things you’re saving up for. It could be a family trip to Europe, your first house, or a new set of wheels. While the other buckets are for regular transactions, your savings should go untouched most of the time, so it’s worth using a high interest savings account like SaveME or HomeME.

Open a transaction account for each money bucket, and a savings account for your savings and emergency buckets. Don’t forget ME has five different coloured cards supporting different charities when you use your digital wallet, making it even easier to stick to your budget, but also do some good.

Split your income amongst the buckets. 

A good rule of thumb is that up to 50 per cent of your total income will be taken up by rent or housing, utilities, and groceries and other bills; 30 per cent should cover splurges; and 20 per cent should go towards your savings.
But remember – once the money is gone from one of your buckets, you can’t borrow it from another. So, you might have to wait until your bucket’s full again before you buy that new pair of New Balance 530s. 

How to get the most out of bucket budgeting. 

1. Plan your spending in advance. 

Nothing is worse for your budget than impulse buying. Taking money from your bills bucket as a cash advance for that festival ticket? Big no-no.
Bucket budgeting will only work when you plan spending ahead of time wherever you can. There’s little tricks to help you do this daily. Take a grocery shopping list and stick to it. Or better yet, do your grocery shopping online so you can track the dollar amount and not be tempted by the choccy aisle. If you’re headed on holidays, set a daily spending limit. You can make it fun by trying to find the best bargain lunch. Pace yourself by spacing out dinners or events with friends and family. Curb the splurge, replenish your social batteries, and look after your account balance.

2. It’s okay to say no.

While bucket budgeting is there to help you achieve balance in your budget and life, if you’re saving for something big, it’s absolutely okay to say no to plans. Be honest with friends and family about your financial goals. Budget LOUD and proud. Embrace those moments when you choose to take a break, because you have big goals on the horizon. Remember, it’s all about doing what feels right for you! 

3. Save money on your biggest spending categories.

Set yourself a budget goal to cut spending in two or three categories like weekly groceries, transport, hobbies, clothing, or entertainment. Review your budget regularly to track your progress. You might even make a game of it. If you cut your spending by five per cent, try cutting it even more next time. Success is its own reward – and it costs nothing. 

Start bucket budgeting with ME. 

Get access to our high interest savings account with no monthly fees, transaction accounts with five coloured cards that support five different charities, and a dedicated home loan deposit account. Now that sounds good to ME. 

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This article is sponsored by Me Bank