On Apr 4, 11:22 am, Druzyne <[email protected]> wrote:
> Bucket totals are simply earmarks for your incoming money - meta-
> accounts that only make sense in the context of trying to spend less
> than you earn. They should not be tied to any particular accounts, and
> if you are honest about spending only what you earn when allocating
> money, these balances should not exceed your actual assets.
>

I'm not saying that all the money within any particular bucket must
reside wholly within a single physical account, and in fact, if you
use credit cards for routine purchases, this will likely never be the
case.

My point is that the sum of the balances of all your accounts which
you use for cash flow (checking, credits cards you pay off every
month, cash accounts) should always have a 1-to-1 mapping to the money
allocated into your buckets, otherwise you are setting yourself up for
trouble.

If you want to frequently move money back and forth between checking
and savings to maximize interest, that's fine, but then your savings
account is now one your "cash flow" accounts and you need to account
for every dollar in that account in some bucket. Otherwise, how would
you ever catch a mistake?

-Lance


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