Budget Buckets
Guide

The Budget Buckets Method

Buckets keep money organised by purpose, not by merchant category. You pick a single pay frequency (weekly/fortnightly/monthly), split that income into named buckets, and let totals tell you when to say yes or no. It’s zero‑faff budgeting that matches real pay cycles.

Concept

What exactly is a “bucket”?

A bucket is a simple purpose for your money: Rent, Groceries, Fuel, Gifts, Emergency, Holiday, etc. Each pay cycle, you add a fixed amount to each bucket. If a bucket runs dry, that’s the signal to pause or reallocate — no spreadsheets required.

Rent

$900 / fn

Groceries

$240 / fn

Holiday

$80 / fn

How is this different to “categories” or “envelopes”?

  • Categories describe the type of spend after the fact. Buckets set the limit before you spend.
  • Envelopes are close cousins; our twist is one global frequency and fast conversion so totals always align with your pay.
Advantages

Why buckets work

Clarity.
Named buckets reduce decision fatigue — you’re choosing between buckets, not endless line items.
Pay‑cycle aligned.
Weekly or fortnightly inputs convert to monthly totals, so bills and savings stay synced.
Volatility control.
Sinking buckets (e.g., Car Regos, Xmas, Repairs) smooth out lumpy costs.

Bonus: it’s easy to share with a partner — “We’ve got $120 left in Groceries this fortnight.”

Step‑by‑step

Set up your buckets in 7 steps

  1. Pick your base frequency. Weekly or fortnightly for most Aussies. The app converts the rest.
  2. List fixed bills. Rent, utilities, internet, insurance. Put their amounts into buckets.
  3. Add essentials. Groceries, fuel, medical, school, phone.
  4. Add “sinking” funds. Car rego, services, gifts, clothing, home repairs.
  5. Plan savings. Emergency fund first, then goals (holiday, upgrade, deposit).
  6. Name a bank account for each bucket (optional). Helps when your bank has multiple accounts.
  7. Reality check. Income − (Expenses + Savings) ≥ 0. If negative, trim or re‑sequence goals.
Use the Budget Calculator to sanity‑check before you commit buckets in the app.
Example

A sample fortnightly plan (AUD)

This is illustrative only. Start conservative and adjust monthly.

BucketAmount (fn)Bank accountNotes
Rent$900EverydayFixed
Groceries$240GroceriesTrack with receipts
Fuel + Transport$120EverydayIncludes myki/Opal
Utilities$110BillsAverage of last 6 months
Insurance (Home/Car)$70BillsSinking fund
Emergency Fund$100SavingsUntil 3–6 months expenses
Holiday$80SavingsGoal date in app
Gifts + Events$40EverydaySinking fund

Rule of thumb: if “Leftover (Monthly)” is negative, cut 10–20% across non‑essentials and re‑run.

Avoid

Common mistakes & quick fixes

  • Too many buckets. Keep 8–15. Merge micro‑buckets into “Misc” until you’ve got history.
  • Changing frequencies per item. Don’t. One global frequency keeps maths sane.
  • No buffer. Add a tiny “Oh‑no” bucket. $20–$50 per fortnight saves headaches.
  • Forgetting annuals. List every yearly bill; divide to your base frequency and bucket it.
Pro tips

Make buckets work even better

  • Automate transfers on pay‑day to separate accounts (if your bank supports multiple sub‑accounts).
  • Overflow rules: If Groceries is under by month‑end, sweep the surplus to Savings.
  • Review cadence: Quick weekly glance; deeper monthly review; reset goals quarterly.
Already using the app? Keep totals visible with the sticky card, and label each bucket with a bank account for easier reconciliation.

Ready to build your buckets?

Start with the calculator, then create buckets in the app. Adjust monthly — progress beats perfection.