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I’ve got over £100k in savings – it’s all thanks to my Three Bucket budgeting method which anyone can follow
A PRO MONEY saver has revealed the simple budgeting method that helped her save more than £100k.
Michela shared that she used the Three Bucket method to help curb her spending and boost her savings.
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She also used a zero-based budget, encouraging her followers to budget their entire income, rather than leaving some money left over as an emergency fund each month.
The money coach, known online as , regularly shares money-saving and budgeting tips with her 772,000 followers.
In a new TikTok reel, she said: “The budgeting strategy that I used to save my first $100k was a zero-based, Three Bucket budget, and I still follow this budgeting strategy today.
“I swear by it, and here’s exactly how to do it.
“So first let’s define what zero-based and Three Bucket actually mean.
“So a zero-based budget is a budget that allocates every dollar of income you earn to either an expense or a financial goal.
“This means, let’s say, if you earn $2000 a month, then every single dollar of that $2000 income is allocated somewhere.
“You subtract your income, minus your expenses, minus your goals, and that equals zero.
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“A Three Bucket budget takes this one step further and allocates every dollar of income that you earn to either an essential expense, a financial goal, or a non-essential expense in that order.
“Those are the three buckets.
“There are a few main reasons why this budgeting method is so effective.
“First is that it gives every single dollar a purpose so you are not left with any money left over at the end of the month.
“And I know a lot of people freak out when they hear that there are people out there who have money left over but it just means that you are not allocating your money to all of your different expenses.
“Or you’re not tracking your expenses in a way that allows you to do that.
“The second benefit of this type of budget is that it really brings awareness to where your money is going.
“So you can see how much money you’re spending on essentials, you can see how much money you’re spending on non-essentials.
“You can see how much money you’re putting towards your goals and then hopefully adjust from there.”
Michela also shared a more simple method to start with if you’re struggling to split your expenses into her three buckets.
She continued: “If you don’t know where to start, I always say to aim to follow the 50/30/20 rule.
“I will disclaim this, that I do understand in this economy this rule is really hard to follow.
“So just use it as a guideline to frame things up if you are able to, but essentially what it does is says that you put 50 per cent of your income towards essentials, 30 per cent towards financial goals, and then 20 per cent towards non-essentials.
“But don’t yell at me, because I know this is hard for a lot of people. I’m just saying it’s a guideline that you can follow.”
Fans loved her tips, with the video gaining more than 700 likes and 10,100 views.
In the comments, Michela’s followers shared their reactions, with many sharing their love for her method.
One wrote: “Love this concept and it’s definitely helped us save for our house and ultimately other financial goals.”
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Another said: “My mom helped me create my first budget after I graduated college and this is exactly what she taught me! Cool to learn it’s a legit method.”
“You’re brilliant. Thanks so much for sharing this knowledge love,” someone else put.
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