Summary
In Episode 13 of the Plain English Finance Podcast, Tré and Sierra walk through the system they personally use to manage cashflow. It’s not a traditional “budget”, but a structure that creates control and freedom at the same time.
Why “Budgeting” Misses the Point
Most people think of budgeting as cutting back — like a financial diet of chicken and broccoli.
But cashflow management isn’t about restriction. It’s about structure.
When your finances have a clear system, you don’t need to constantly track receipts or fight guilt over every purchase. You just follow the framework.
Tré explains:
“Don’t track expenses — set them. You decide ahead of time what each category gets, then you automate it. That’s how you make progress without obsessing.”
The Five-Account System
This method works at any income level. It’s not about the dollar amount — it’s about how money moves.
1. Income Account
All money flows here first. No debit card, no spending. Its only purpose is to collect income.
2. House Account
Once a month, transfer what it costs to live — mortgage, insurance, utilities, groceries, subscriptions. Annualize your expenses, divide by 12, and move that amount.
3. Spending Accounts (One Each)
A set amount is deposited automatically into each partner’s account each month for guilt-free spending. No questions asked. It’s about independence and avoiding resentment — one of the biggest relationship stressors.
4. Grocery/Food Account
Groceries, restaurants, coffee runs — everything food-related comes from here. When it’s empty, it’s empty. If you go over, it comes from your personal spending account, not the house account.
5. “Net Worth Up” Account (Investments)
This is where the leftover money goes — the difference between your income and your lifestyle.
First, it pays off consumer debt. Then it builds your emergency fund. After that, it funds investments.
“Every dollar that doesn’t need to be spent today should be working for you tomorrow.”
Why It Works
This structure does three important things:
- Creates boundaries — You know what’s available to spend and what’s off-limits.
- Builds consistency — Automating the flow makes saving and investing effortless.
- Encourages contentment — It separates “enough” from “more,” helping you focus on what truly improves your life.
Tré sums it up this way:
“The person earning $100,000 and spending $100,000 will always feel poorer than the person earning $80,000 and spending $70,000.”
Because the goal isn’t to have everything.
It’s to have enough and know that what’s left is building something bigger.