According to an AARP study*, more retirees fear running out of money than they fear death. You deserve to have power over your finances and the opportunity to live a life unencumbered by financial worry.

The First Step Cash Management system** can help ease some financial worries as it allows cash to flow into three accounts or “buckets.” Each of the three buckets holds a specific type of money, and each type of money has a specific use or purpose. This system aids in tracking your spending and knowing where your money is going.

1. The Static Account™ bucket holds money that has been spent or has agreed to be spent at some point in the past, such as mortgage, auto loans, credit card debt, insurance, and utilities.

2. The Control Account™ bucket contains money that will be spent within the next seven days. This account includes daily needs like groceries, pet care, clothing, etc.

3. The Dynamic Account™ bucket stores money that will be spent in the future on things such as charitable giving, debt reduction, vacation, and gifts.

For retirees who feel overwhelmed by the many decisions they face as they enter retirement, a bucket strategy similar to the envelope system that their parents may have used back in the day, may help them divide what they see as one large stress-inducing problem into smaller, more manageable pieces.

*Running Out of Money Worse Th an Death – by: Carole Fleck: AARP Bulletin, July 1, 2010
**First Step Cash Management is owned by Th e Planning Center Inc. and Distributed by Money Quotient, NP