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Most people struggle to keep track of multiple savings goals in one account.
Buckets solve this problem by creating clear divisions for your money, Sethi wrote.
Heres how these accounts work, according to Sethi, andwhy theyre crucial to building wealth.
How Savings Buckets Work
Savings buckets let you create multiple subcategories within one savings account.
Then you could clearly track the progress of each bucket without any extra hassle or transfers.
The best part about this system is its flexibility, Sethi explained.
you might move money between buckets whenever it’s crucial that you without dealing with actual bank transfers.
The bucket system functions similarly to the old-fashioned envelope budgeting system, only digitally.
It allows you to visually see where each savings goal stands rather than just one large lump sum.
This helps you make more progress toward financial goals.
This bucket can be a financial safety net for unexpected costs or income disruptions.
You wont find yourself in a pinch with buckets already presaved.
Your bucket system should evolve with your life, Sethi wrote.
Dont be afraid to adjust categories as your goals and priorities change.
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