Summer is coming up, and here I am without my beach bod. We all say we have enough time to lose the extra pounds, and then—boom—May is right around the corner. Before we know it, June and July fly by.
Again, just like last year, I stand to the side, embarrassed to take my shirt off and get in the water. “No, I’m okay. I don’t like getting in the water. It’s too crowded. Too many germs.” At least, that’s what I tell them.
I might not be ready to take my shirt off, but at least I can afford to take my kids to Florida this year.
Just like being embarrassed about my belly, I used to be embarrassed about my money. I couldn’t afford to take my kids out to eat or enjoy a movie. Christmas presents? Birthday gifts? Forget about it. Just thinking about it used to get me down.
I was horrible with money. I’d spend my paycheck as soon as I got it. No savings, no budget—heck, I didn’t even know what budgeting was. Any sudden emergency or expense would crush me.
Then I came across a few books that completely changed my perspective on money and budgeting. They explained that to manage money properly, you should allocate it into different “buckets.”
These buckets are just another name for accounts or categories—I call them splits because you’re literally splitting your money.
How Splitting Works
The concept is simple: Every paycheck or source of income gets allocated into different splits, each with a specific purpose.
Let’s say I just got paid $500 for creating a website. Every dollar gets assigned to a split.
Here’s how I might split up my money:
Fixed Amount Splits: These have set dollar amounts.
- Travel (Florida trip): $150 (I might not take my shirt off, but I’ll be at the beach with my kids)
- Emergency Fund (Real emergencies, not for a last-minute invite to Vegas with friends): $100
- Big Expenses (New phone, clothes, or that one thing I think I need): $50
- Taxes: $60 (Because the IRS doesn’t take IOUs)
Percentage-Based Splits: These vary based on what’s left.
- Down Payment (Saving up for a rental property): 60% of the remaining balance
- Investments (Sudden business opportunities): 40% of the remaining balance (How many times have you had to pass up on a great offer for lack of money?)
How Budgeting Transformed My Money And My Life
Putting this system into action completely changed how I handle money. Suddenly, I could afford trips and experiences I never thought possible.
I know what you’re thinking—what about rent, groceries, utilities, and car payments?
This was just a simplified example. In reality, every paycheck includes a fixed amount for necessities like rent and groceries, and I split the rest similar to the example I gave.
The best part? You can adjust it to your own lifestyle and current situation. At one point, I had 8 or 9 splits. Now, I rotate between 4 to 6, depending on how much money I have. There’s no strict budget—you decide what works best for you. Some paychecks, I put more into certain splits. Other checks, I skip some altogether. And that’s okay. The important thing is prioritizing your money wisely.
A Smarter Way to Budget
For a while, I was budgeting and doing the math manually—using my phone’s calculator, pen, and paper. It worked, but switching back and forth was a hassle.
That’s why I created Let’s Split It!—a budgeting app that simplifies the entire process.
With Let’s Split It!, you can:
✔️ Create as many splits as you need
✔️ Set fixed amounts or percentages for each split
✔️ Adjust, add, or remove splits before finalizing
✔️ Get a clear summary of where your money is going
When I submit, I get a clear summary of my splits and how much money is allocated to each one. Don’t like the results? Start over and tweak the numbers to your liking.
Once I see my summary of splits, I simply open my banking app and transfer money into the corresponding accounts. Speaking of which, I keep multiple bank accounts, each named after a split—Travel, Taxes, Rent, etc. Many banks allow unlimited sub-accounts, though some may require a minimum deposit. But since I’m budgeting and splitting my money, I always have enough to cover that requirement.
Ready to Take Control of Your Money?
Let’s Split It! is a free tool to help you visualize and organize your money. It doesn’t collect any personal data and doesn’t connect to your bank—it’s simply a budgeting calculator.
So, what are you waiting for?
Download Let’s Split It! on Google Play today and start budgeting your money! No sign-up required.
I’d love to hear your thoughts! Leave a review and share it with your friends.
Feel free to reach out with any ideas or feedback!
Meanwhile, I’ll be working on my beach bod. Fingers crossed. 😆