Let me be real with you - I grew up watching my mom work 12-hour shifts to make ends meet. Today, as a financial planner working with women and minority business owners, I see too many people struggling because no one taught them how to protect their wealth during tough times.

Here's the truth: You don't need a specific dollar amount to be "ready" for life's challenges. What you need is a strategy. Let me share the three-bucket approach that's helped my clients survive and thrive through economic ups and downs.

Why Most Financial Advice Misses the Mark

When people talk about economic downturns, they usually focus on the stock market. But here's what I tell my clients at Black Mammoth: The real economy is what's happening in your neighborhood. Are people happy? Are they spending? Are they out and about? That's your real economic indicator.

The Three-Bucket Strategy Explained

Instead of worrying about having a specific amount saved, let's focus on organizing what you have. Here's how the three-bucket strategy works:

Bucket 1: Short-Term Money (0-6 months)

• Keep this in your checking and savings accounts

• Should cover 3-6 months of expenses

• This is your emergency fund and daily spending money

• Think: rent/mortgage, groceries, utilities, regular bills

Bucket 2: Mid-Term Money (3-12 months)

• Put this in high-yield savings accounts or lower-risk investments

• Another 3-12 months of expenses

• This is your backup emergency fund

• Think: unexpected car repairs, medical bills, job transition

Bucket 3: Long-Term Money (12+ months)

• Invest this in the stock market

• This money isn't for touching

• Separate from retirement savings

• Think: future opportunities, major life changes

Why This Strategy Works

The beauty of this system is that it gives you options. If the economy tanks or you lose your job:

• Bucket 1 keeps you afloat immediately

• Bucket 2 gives you breathing room

• Bucket 3 can grow untouched while markets recover

Making It Work for You

Now, I'll be straight with you - this isn't easy to set up. But here's how to start:

• Calculate Your Monthly Expenses

  • List everything you spend in a month

  • Include irregular expenses (like annual subscriptions)

  • Don't forget about debt payments

• Start with Bucket 1

  • Open a separate savings account if needed

  • Aim to save one month of expenses first

  • Gradually build to 3-6 months

• Move to Bucket 2 Once Bucket 1 is Full

  • Research high-yield savings accounts

  • Consider low-risk investment options

  • Keep building while Bucket 1 stays full

• Begin Bucket 3 When You're Ready

  • Start learning about investing

  • Consider working with a financial planner

  • Think long-term growth

The Most Important Thing to Remember

Here's something I've learned from years of helping clients: You can't do this alone. No millionaire, billionaire, or successful person built wealth by themselves. They had teams supporting them.

Don't feel like you need to figure everything out solo. That's why I created my Power Hour consultations and why I share real talk about money on my No BS Wealth podcast (nobswealth.com).

Taking Action Today

Start where you are. Maybe you can only put $50 in Bucket 1 right now - that's fine. The important thing is to start building your foundation.

Remember: The goal isn't to get rich quick. The goal is to build a system that protects you and your family no matter what the economy does.

Want to learn more about making this strategy work for your situation? Let's talk. Check out nobswealth.com for more straight talk about money, or book a Power Hour to get personalized guidance.

Your financial future is too important to leave to chance. Start filling your buckets today.