Introducing the Three-Bucket Strategy: A Simple Way to Bring Clarity to Your Finances

Here is a simple way to think about your money that works in any market and any season of life.

If there is one thing I have learned over the years, it is that most people are never taught how to organize their money. They save a little here, invest a little there, and hope it all works itself out. But without a clear framework, it is easy to end up scattered, stressed, or pulled in too many directions at once.

That is why I am introducing something called the Three-Bucket Strategy. It is a simple way to think about every dollar you have, and it brings a sense of order and calm to your financial life.

The idea is straightforward and rooted in the idea that every financial plan needs three things:

1) Liquidity
2) Stability
3) Long-term growth

The first bucket is your “liquid” bucket. This is the money you can get to at anytime without an issue. Think savings accounts and money market funds.

The second bucket is your “safe growth” bucket. This is where you protect principal while still earning steady growth over time. Think CDs, cash value life insurance, fixed annuities, and tax-free municipal bonds.

The third bucket is your “risk growth” bucket. This is where your long-term investments create wealth through stocks, ETFs, real estate, digital assets, precious metals, etc. This bucket carries the most potential risk, but it also carries the most potential reward.

Each bucket plays a different role. When you balance these three buckets well, you create a plan that can handle good markets, bad markets, and everything in between.

In the coming days, I will walk through you each bucket in more detail so you can apply this strategy to your own financial life with confidence.

Blessings!

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