Use money 'buckets' to track your spending

By Tami Dixon*

Before credit cards and online banking, people used jars or envelopes to divide their cash into different spending categories.

These methods of "bucketing" monthly income was a way to keep track of your hard-earned cash and to control your spending. When the "food" bucket would run dry, you ate spuds until the next payday. If there was food money remaining at the end of the month, you could treat yourself to a nice restaurant - guilt free.

Most of us still need money buckets to help control our financial lives. Without them, it's difficult to set savings goals.

Here are some ways to bucket your money:

Name your STCU share accounts

You can turn your STCU accounts into a bucketing system by assigning names to each share accounts. Naming your subaccounts "Motorcycle Fund" or "Italy Vacation" is more motivating than just calling it the "S1 share account."

The advantage of this system is that you can transfer funds into the accounts online or by telephone. However, you are limited to a total of ten different S1 accounts.

Use envelopes

some durable envelopes or pouches and give each a name for your spending or savings categories such as "Food," "Utility bills," "Summer vacation," "Kid's braces," and so on. Each time you cash your paycheck, divide the money into your envelopes.

With this system, you can use as many envelopes as you want and you can count your money in hand. However, you cannot make electronic transfers and you won't earn any dividends on the money when it's not on deposit at STCU.

Your first bucket

Make your first bucket an STCU First5 Savings Account. The first $500 you deposit earns 6.14% Annual Percentage Yield, one of the best rates anywhere. Learn more.

Plug your buckets

Benjamin Franklin once said, "Beware of small expenses - a small leak will sink a great ship."

It's easier to resist the temptation to take out $20 here and there when your money is already earmarked for a specific goal. Use STCU's online banking system to set up regular, automatic transfers from your primary STCU checking or savings account to your designated "bucket" accounts before any leaking of your money can occur.

With your buckets automatically filled each month, you'll spend less time bailing out of financial trouble and more time enjoying the money you've worked hard to save.

For more information, chat with a Member Service Representative or call STCU.