Three Pots of Money.

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Rainy Day

Money you are reserving/earmarking for use at some future stage, roughly 6 – 12 months net income.

Slush

Money you have set aside for partying, this is where you take the money to cover holidays, stag weekends, Christmas and Bank Holiday spending.

By creating a specific reserve you make sure that cash is available when you want to spend it, without touching your long term or rainy day money.

Long Term

This is the pot of cash you use for investing, money you have earmarked for investment or long term savings.

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