Step 2

Set Up Your Buckets

‘Here’s how we’re going to manage our money,’ I announced to my wife Liz (on our very own Barefoot Date Night).

‘Oh really?’ she said, eyebrows raised, head cocked to one side.

To succeed over the long term, I knew I had to come up with a simple, hassle-free plan that operated on autopilot (for Liz) yet moved us forward and built our wealth (for me).

I decided to make it so simple that I could draw our plan on the back of a serviette.

Here’s what I drew:


Yes, our entire money management plan consists of dividing our income into three ‘buckets’:

  • a Blow Bucket, for daily expenses, the occasional splurge and some extra cash to fight financial fires
  • a Mojo Bucket, to provide some ‘safety money’, and
  • a Grow Bucket, to build long-term wealth and total security.

Don’t for a moment be fooled by the simplicity of the picture. Liz and I have used this plan to manage our investment property, save for our honeymoon, pay off our mortgage, manage a business that earns income in inconsistent lumps, create a solid-as-a-rock emergency account and compound our wealth.

Even better: thousands of people of all ages and income levels have used my Serviette Strategy with stunning success.

I explain exactly how my Serviette Strategy works in my brand new book, The Barefoot Investor: The Only Money Guide You’ll Ever Need. Order your copy here.