Home Trends Bucket System Update | New Savings Rate

Bucket System Update | New Savings Rate

by smart

hi everyone it’s yuyin here welcome back to my channel today’s video is going to be an update of my bucket system so let’s get into it [Music] okay so the bucket system for those of you who are new here the bucket system is a money management system that i use to save me a lot of money and i first learned about this system through the book of the barefoot investor which is a mastery if you’re interested in financial empowerment financial freedom and it is a really really good system that has helped me correct a lot of my spending behaviors or like it has helped me develop good money habits and i’m gonna walk you through what’s new with the bucket system first and foremost there are three buckets there is blow grow and mojo and as you can tell those three simple things are blow to be spending your money grow to grow it and mojo to have that security in the form of an emergency fund so it’s very straightforward and i’m gonna show you how i tweak this system to my advantage or to my personality type where i have been using it for years and years and it has really helped so my first bucket which belongs to the blow category is called daily expenses and in my daily expenses i spend on anything that i would use in my daily routine such as food bills money from my mom insurance things like that daily stuff so what i do is i allocate 11 of my money of my income every single month when i get my paycheck the first thing that i do is i transfer money all over the place into these different buckets that i will describe and 11 of it goes to my daily expenses into one particular bank account or current account where i expense from so these daily expenses i have reduced how much i’m spending on them or rather when i got a raise in february i just maintained the same amount that i was spending on as previous bucket allocation and as a result of that it’s now at 11 i think it used to be 17 of my allocation so the second account is a splurge fund and this splurge fund i am spending nine percent of my income every month to treat myself to the things that i like and in this financial journey i yes i mean like fire movement very cool but i’m about treating your current self as well as planning for your future self it’s important to balance the two and i find that we gotta make it fun in order to want to continue on this journey of financial freedom and i like to spend on clothes i like to spend on fitness i like to spend on food treating people to things and good food so it’s quite self-explanatory and i have a separate account for that which i spend my splurge money from and another blow account i guess this is the last blow account is my debt detonator so this debt detonator has changed since the previous videos so i’ll link those previous videos up in the cards so that you can get a sense of where i was and now where i’m at that detonator was used to make sure that i never get myself into debts and because now i’ve moved out of home i have more expenses i have used this debt detonator fund to pay off things related to the house so 15 of my income goes to this particular fund and most of it actually is used up in rent utilities and like groceries things for the house basically and yeah because of that i get to stay out of debt and i am never worried about credit cards because i always pay them off in full every single month which i encourage everyone here to do because interest on credit cards is crazy at 18 21 depending on what bank you’re using and where you are in the world so now that we’re done with all of the blow accounts the one of my favorite accounts is actually the grow account and that’s my investment fund every month i allocate 50 of my income into this investment fund and it varies because i have a number of investments that i dedicate my money to so i kind of like sprinkle it all over the place and certain months i’ll focus on certain things so i do have my local malaysian stock brokerage accounts those i don’t really want to top up anymore because i think they’ve reached a certain amount that i’m happy to keep as like capital and then i’m really building on my international brokerage as you know i use td ameritrade for the u.s stock market and i also use tiger brokers right now and i also have scythe i’ve stashed away and these are the four the four main brokerages and robo advisors that i utilize right now and i kind of do this thing where because we’re earning malaysian ringgit it takes a while to have a significant amount of money in sting dollars or us dollars so i stockpile i save up and then once it reaches a better amount then i transfer it into those brokerage accounts or those robo advisors and yeah that’s the way i like to go about it i really do believe that if you are looking to invest overseas you’re gonna need a bigger capital so that you can make your money work for you and i don’t really believe in fractional share so much unless you are working with robo advisors which is actually really good for affordability and accessibility and yeah that’s it so after the investment account for growing there are accounts that make me smile in the long run so these small accounts are designed for us to use to save money for things that will make us smile in the long run and under these i have vacation and gifts for vacation as we know in the pandame we don’t really have a lot of vacations that we need to save up for because we’re not going anywhere unfortunately and because of that i’ve changed the allocation from 10 my vacation fund has been uh five percent of my income allocated and it’s just saving there in my frank ocbc account yes that’s where it’s at and then the gift fund the gift fund this month is particularly relevant in malaysia we have the white flight movement so what this is is a lot of communities out there are taking the courage to hang up white flags because they are saying enough is enough i need help i need support and i am surrendering and humbly asking for this help so a lot of initiatives are right here in malaysia where people are donating food donating help whatever it is they can do and what i’m using my gift fund for this month that 10 allocation of my income is going straight to these charities these donations and i’ve already donated a portion of it and i still have uh a few hundred ringgit left to go so i am looking into the different options that i can put the money to good use for the people who really need it the most right now and i highly encourage you to do the same because every little bit counts and the whole point of growing wealth is so that we can have more options and there is no better time than to help others than right now it doesn’t matter if we don’t have the level of wealth that we are searching to have but you know it matters that we help some people right now with the ability that we have so i really like this gift fund and i think it is a great way to plan for giving not just giving gifts like for weddings or like birthdays but for giving to charity as well so i really like that and i’ll put links down below for those of you who are interested to support these causes as well okay now i have missed out an account which is the mojo account and i have to say that that emergency fund has been sorted because that was the first thing that i did on my financial empowerment journey i started off with building an emergency fund because i don’t want to or i didn’t want to start off my investing journey and then have some sort of emergency then have to take out my money from my investments to pay for that emergency because that would disrupt and destroy momentum and the whole system would kind of be like yeah it will crash right so emergency fund what i highly highly recommend to do is to build that first and how i started was with 1 500 ringgit and then built it up to 3 months of expenses and then 6 months 9 months 12 months as you know the pandemic is crazy it’s been like a year and four months we’re a year and four months in and you never know whether you’re gonna lose your job you’re gonna lose your income source or sources so that’s why i like to diversify my income and yeah i i guess like the only way to not be insecure about money is to actually really master the skills of earning spending saving and investing and it’s all a one by one step basis and we will get better at it and i’m still refining the skill of earning money i’m still working on it so yeah i guess that’s it for my bucket system i have gone from 78 in savings per month to 66 in savings per month and that’s okay because i feel like now i have a more accurate representation of what my expenses are like in a month especially now that i’m paying for rent and like paying for more groceries and utilities and things like that however i have to say that i am also not including any of the income from my side project i don’t take a salary from those things not now not yet anyway i’m gonna figure out a way to reward myself eventually for that or like take money out of the business like some money out but as of now i don’t have plans for that and yeah so all the money that i’m talking about for my bucket system is just from my day job and the other income they’re all like a separate entity from me and that’s how i am doing this so far but it does get a little bit complicated because of expenses you know in the last uh two videos ago or the last video ago i talked about the number one lesson that i learned from rich dad product which is businesses spend less on tax legally and now that we have like some shared expenses such as the utilities here so let’s say internet bill or electricity bill i can actually expense off a portion of those bills under my company being in my company’s name and everything and yeah that actually helps me you know what i mean right it helps me to navigate the expenses and declare a lower taxable income when it comes to the business profits so yeah that’s very interesting i guess i’ll eventually get into a video um detailing how i do that i just don’t want to get into accounting um discrepancies because i’m not an accountant nor is this financial advice i’m just someone who really likes this kind of financial stuff and i’m sharing with all of you so comment down below on what you’re using to manage your money what are your favorite high interest savings accounts or systems that you use personally and yeah i will see you in the next one take good care bye


rn
Bucket System Update | New Savings Rate
rn

Related Posts

Leave a Comment