Three Buckets and a Coffee Can: A Simple Budget Tool Anyone Can Use
Forget spreadsheets and budgeting apps. If you’ve got a pencil, a scrap of paper, and a little honesty—you can take control of your finances. No fancy math. No shame. You don’t need an expert, just a system that works for real life (and leaves room for your morning coffee).
Let’s Ditch the Fancy Stuff
A lot of people—especially those suddenly in charge of the household budget—feel overwhelmed. Maybe your spouse handled all the bills. Or maybe you’re just tired of the paycheck disappearing before the month is halfway over.
I was one of those. Living paycheck-to-paycheck. Working two jobs and not getting ahead – in fact, barely getting by. One day, I discovered a way to work my way out of the hole I was in. It’s called Three Buckets and a Can.
Real Talk
We’ve met single moms who can’t pay rent—but have five food delivery apps. We’ve met widows scared of the electric bill—while streaming movies on three services. We know seniors who live on credit cards, borrowing from one to make the payment on another.
This isn’t an indictment. It’s a symptom of the world we live in today. We’re pressured to “keep up with the Joneses”, but not being told that the Jones family is struggling just like the rest of us.
You don’t need judgment.
You need a flashlight and a plan. This is both.
Three Buckets and A Can is simple way of identifying where your money is going, where you are leaking money, and how much you can recover.
All expenditures fit into one of three categories: Required, Needed, and Other.
Required Expenditures are those needed to survive. This would include expenses such as mortgage or rent, utilities, or minimum debt payments.
Needed Expenditures are those expenditures necessary to maintain yourself or your family. This would include expenses such as groceries, gas, medical care, etc.
Other Expenditures are those expenses that really hold the key to your financial recovery. Simply, if it ain’t Required, and it ain’t Needed, then it belongs in the Other bucket.
You decide what’s important to you. Assign it to the appropriate bucket. For example, your buckets might look like this:
REQUIRED EXPENSES
- Mortgage or rent
- Utilities (electricity, gas, water)
- Car payment
- Insurance (health, auto, home)
- Minimum debt payment
NEEDED EXPENSES
- Groceries
- Gas
- Household supplies
- Medical costs
- Personal care
- Auto repairs
OTHER EXPENSES
- Streaming services
- Takeout meals
- Hobby purchases
- Phone upgrades
- Gifts and impulse buys
- “Retail therapy
How Do You Do This?
Try this:
1. Pull your last bank or credit card statement.
2. For each transaction, label it: Required, Needed, Other, or Coffee Can.
3. Add them up. Be honest.
4. Ask yourself:
– Where am I overdoing it?
– What could I shift from “Other” into savings or debt payoff?
Examine each bucket. Where can you squeeze out a little cash? Lower the light bill by turning off lights? BUT — focus on the Other bucket!!
The ‘Other’ bucket is where you find the money to lower your debt load, put away savings for a cruise, or even just to buy a new fishing rod. Reclaim it, and you might just afford your own.
Ask yourself the tough questions! Do I really need that streaming service? Do I eat out too often, simply because I don’t feel like cooking? (Hint: This is where I was wasting a bunch of money. Resolved to cook at home. Taught myself how. Now, I’m a damn good cook – AND my food bill has gone down! Amazing what you can do with a Brussel sprout!) That could be you.
This exercise doesn’t cost you a dime. But it might save you hundreds—every month.
Once you’ve identified extra money, go back to your Required and Needed buckets. Where should you apply this extra money?
Tip: Applying your extra money is tough. The temptation is to spend it on something you want, rather than what you need. Maintain your discipline. Look where you can get the most return on your investment. It’s usually in debt reduction. Make extra payments on your credit cards, and it pays you back. Less balance, less minimum payment, even more extra money to apply where you need it. Stay tuned for our upcoming blog, Managing Your Credit Card Debt.
Helpful Tools To Get You Started:
- Cash Envelope Wallet like these from Amazon
- Budget Journal with Category Stickers
- Bill Negotiation Services (like Rocket Money)
- Simple Budgeting Course for Beginners (Ude
Closing
Got your three buckets labeled? Good. Now dig in, even if it’s uncomfortable. Control is earned—and you just took the first step.
Have your own budgeting trick? Share it in the comments.
And if this helped you at all, pass it along to someone else who could use a fresh start.
