Over the Money Fence – The Three-Bucket Strategy: feel calm and confident about your finances
In this episode of Over the Money Fence, I join Nicola and Di to explore the Three Bucket Strategy – a simple yet powerful way to take control of your finances with structure and confidence. Life can get busy and complicated, especially when juggling adult children and aging parents, life events like divorce, or inheritances can also complicate your finances. This strategy helps you stay grounded by dividing your money into three clear categories: cash for now, income for soon, and growth for later.
Each bucket plays a specific role – offering peace of mind, income, or long-term wealth – and is rebalanced annually to keep your financial plan on track. Bucket 1 holds liquid, low-risk assets like savings accounts or private credit to cover short-term needs. I highlight how private credit can offer a flexible, lower-volatility solution for investors with clear time horizons – especially when public markets may not be suitable. Bucket 2 generates steady income through investments, also an area where private credit can fit in – given some private credit funds offer monthly liquidity. Bucket 3 focuses on long-term growth via superannuation, shares, or property.
The strategy evolves with you: in your 30s, it’s about getting started; in your 50s, it’s time to review and build structure; and by your 70s, the focus shifts to simplifying and prioritising income. This episode also shares real-life examples to show how the Three Bucket Strategy can support confident financial decisions at every stage of life.
To learn more about the three bucket strategy, you can read more about it on the blog here.
Catch the full conversation with Nicola and Di on Youtube here.
Or you can listen to the episode on apple podcasts here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
