Most people are uncomfortable talking about money and I’m committed to helping my clients understand the psychology of money and the impact it has on our lives. I’ve read many books about money and I’m fascinated by the way our attitudes about money and worth influence our countertransference and the fee setting process. One of my favorite money books is Bari Tessler’s- The Art of Money. Tessler is a somatically trained financial therapist who teaches a yearlong online money course which I took several years ago. One of the many valuable practices I learned was to divide my money into separate “buckets”. These buckets help me organized my finances and avoid “surprises” at tax time.
My first bucket is a business savings accounts labelled “quarterlies”, I transfer money to this account every week so that when the end of the quarter comes, I have enough money to pay my taxes. My second business savings account is labelled Gray’s Bank which I use for my rainy-day fund to cover me during slower times and to save money for training and other “big ticket” expenses.
I use the same system to manage my personal finances, and the structure is based on my personal values and interests. I value fitness and I invest in yoga and Pilates classes (currently online) which I purchase in packs of 20. I’ve created an account called “Pilates and Property Tax” for my property taxes, yoga and Pilates, and an “Adventures” account that I use to save for vacations. In the past I’d charge my vacations on a credit card which resulted in having to pay off a large debt when I returned home. Now I have the money ready and I can pay for my vacations immediately without any pressure. I have a main savings account where I’ve saved six months of living expenses. Most financial professionals recommend saving at least a year of expenses, so I’m working on building up that account.
Maybe this sounds like too many accounts to you, perhaps you’d prefer just one or two. I’ve found that paying myself first and planning for emergencies, vacations, fitness expenses and taxes has created more ease in my financial life. It helps me manage the ebbs and flows of income that come with being self-employed. What buckets might you use if you were organizing your money this way?