Bucket budgeting is even easier and more efficient with Divy Up. In this comprehensive guide, we’ve provided you with step-by-step instructions on how to get started with bucket budgeting and Divy Up. By following these tips, you can save money and achieve your financial goals.
The quick facts
- Bucket budgeting divides your income into separate categories, or “buckets,” for different expenses and goals.
- Divy Up is an app that makes bucket budgeting easy by allowing you to set up automatic transfers to each bucket.
- To get started, you need to set your financial goals, create your buckets, assign percentages or fixed amounts, set up automatic transfers, and track your progress.
- Bucket budgeting with Divy Up helps you prioritise your goals, save for multiple goals at once, set aside money for unexpected expenses, avoid overspending, and reduce financial stress.
How can bucket budgeting with Divy Up help you achieve my financial goals?
Are you tired of feeling overwhelmed by your finances? Do you want to save for multiple goals but don’t know where to start? Bucket budgeting might be the solution you’ve been looking for. With bucket budgeting, you can divide your income into separate categories, or “buckets,” for different expenses and goals. And with Divy Up, bucket budgeting has never been easier. Here’s how to get started:
Step 1: Set Your Financial Goals
Before you start bucket budgeting with Divy Up, you need to know what you’re saving for. Take some time to think about your financial goals. Do you want to save for a down payment on a house? Pay off debt? Build an emergency fund? Take a vacation? Write down your goals and assign a dollar amount to each one.
Step 2: Create Your Buckets
Next, you need to create your buckets. You can use as many or as few as you want, but it’s important to have a bucket for each of your financial goals. Here are some common buckets you might want to consider:
- Fixed expenses: Rent or mortgage payments, utilities, car payments, insurance, etc.
- Variable expenses: Groceries, gas, entertainment, etc.
- Debt repayment: Credit card debt, student loans, etc.
- Emergency fund: A bucket to save for unexpected expenses, such as a medical emergency or car repair.
- Savings: A bucket for long-term savings, such as retirement or a down payment on a house.
- Fun money: A bucket for discretionary spending, such as eating out or buying new clothes.
Step 3: Assign Percentages or Fixed Amounts
Now it’s time to assign percentages or fixed amounts to each bucket. Divy Up allows you to do either, depending on your preference. For example, you might decide to allocate 50% of your income to expenses, 30% to debt repayment, 20% to savings. Or you might decide to assign fixed amounts, such as $1,500 per month to expenses, $300 per month to debt repayment and, $200 per month to savings. Here is a quick pro tip, you have the flexibility to set some accounts to be fixed and others to be percentage based. This allows you to personalise your bucket budgeting plan in a way that works best for your unique financial situation.
Step 4: Set Up Automatic Transfers
Divy Up makes it easy to set up automatic transfers to each of your buckets. Once you’ve assigned percentages or fixed amounts, you can schedule automatic transfers to each bucket on a regular basis. Divy Up will transfer the designated amounts to each bucket, so you don’t have to worry about manually moving money around.
Step 5: Track Your Progress
With Divy Up, you can easily track your progress toward each of your financial goals. The app provides a clear picture of how much money is in each bucket and how close you are to reaching your goal. You can adjust your percentages or fixed amounts as needed and see the impact on your savings goals.
Benefits of Bucket Budgeting with Divy Up
Bucket budgeting with Divy Up has several benefits:
- It helps you prioritise your financial goals.
- It makes it easier to save for multiple goals at once.
- It ensures that you have money set aside for unexpected expenses.
- It helps you avoid overspending in discretionary categories.
- It reduces financial stress by giving you a clear picture of your finances.
Bucket budgeting with Divy Up is a powerful tool for achieving your financial goals. By creating separate buckets for different expenses and goals, you can take control of how you save.
