Best Buckets To Help Budget

Emergency Fund

Everyone needs an emergency fund, which should start with a minimum of one thousand dollars in it to cover the cost of an emergency if it occurs. This might be a last-minute airline ticket to see someone who is sick and dying, a car repair, or something else you weren’t expecting, such as a medical emergency. One thousand dollars is just a basic number to start with, though it is something you must have all the time. This money is only touched if you have no other options, and even then it should be replaced as quickly as possible. However, you should never stop contributing to this account when it reaches one thousand dollars. Once you reach this number, continue adding enough money to the bucket to cover the cost of three months of your living expenses. Then add enough to cover three more months, followed by another three, and so on. You ultimately want this bucket to contain enough money for you to live off of for one year if there is an emergency to warrant its use.