Mel Robbins

That's bucket one.

Bucket two, savings.

That's your emergency fund, plus the money that you may need in the next one to five years if you've got some big goals like wanting to make a down payment for an apartment or a house.

Bucket number three, investments.

That means long-term investings, retirement, 401k, IRA, brokerage accounts.

And by the way, if you're thinking, Mel, I...

I can barely pay my bills.

I can't even think about savings.

The next expert that you're going to meet is going to teach you a amazing rule around how you can start saving now, even if you're living paycheck to paycheck or working an hourly job.

This is a genius trick you're going to love.

And that fourth bucket.

guilt-free spending.

This is money set aside to enjoy your life so that while you're working hard to pay off your bills, to put away savings, you're not depriving and punishing yourself.

This is the bucket that allows you to buy those glass containers on Amazon if it makes you happy.

Because I remember when my husband and I were nearly a million dollars in debt.

It was all one big glob of shame and stress.

I felt like I couldn't spend money on anything, and I mean anything, even on things that brought me joy.

The fact is that if I had had a clear plan, if I had made a minimum payment, if I had gotten my life in order faster by having a target that I could hit, understanding how long it was going to take, I would have seen...

That I had an extra 20 to 50 bucks every month to work with?

Money that I could use to go to the movies or go get a latte with a friend or take the kids to the half-day, you know, admissions day at the zoo in Boston?