My Trifecta Theory: A Simple Budgeting Strategy For Every Phase in Your Life

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When I was younger, I had a simple budgeting strategy for making decisions.

I called it my trifecta theory.  If something checked three boxes…

  1. Financially smart,
  2. Personally beneficial, and
  3. Efficient

…I was in.

If it only checked two? Still good. That was a “duofecta.”

At the time, I didn’t think of it as one of my budgeting strategies—but that’s exactly what it was.

However, I found it doesn’t work the same now as it did in my twenties.

Here’s how it began.

And how it’s evolved.

My Trifecta Theory: A Simple Budgeting Strategy For Every Phase in Your Life Share on X

My Trifecta Theory: A Simple Budgeting Strategy

How It Started

For me, budgeting began in college. Most of my expenses were covered through scholarships, student loans, part-time work, and my dad, who sent me $100 to $200 a month.

But dad didn’t believe in free money. He had a requirement.

I had to do a budget.

I didn’t like that. It felt like my integrity was being questioned. But I did it. I gathered eight colored highlighters and went through my checkbook, color-coding every expense.

Dad knew what he was doing. He taught me a life lesson that stuck.

Budgeting became a habit.

An Early Win—The Duofecta

After graduation, and newly married, we both started working and wanted to save. First, we had to figure out where the money was going.

I shifted from highlighters to Quicken, which, at the time, meant a lot of manual entry.

A pattern quickly emerged. The Walmart pattern.

There was no Amazon. When we needed toilet paper or cleaning supplies, we popped into Walmart. And every time we walked in, we spent about $100. We’d leave with what we needed… plus a few things we didn’t.

So I limited our Walmart trips to once a month.

Just like that, we found about $300 a month in savings. It felt like magic. No extra discipline required. Just a small behavior shift.

It saved time and money.

My first duofecta.

When Budgeting Doesn’t Work

A few years later, I was divorced, and finances were tight… tight enough that a budget didn’t really matter. Money coming in was less than money going out. The focus shifted to minimizing the damage.

Eating out was rare. When I did, I ordered the least expensive thing on the menu.

And to drink?

Water.

Even at the grocery store—no sodas, no tea, no coffee.

Always water.

It was cheaper and better for me.

Another duofecta.

My First Real Trifecta

Eventually, I bought my first home. I had started in the financial services business and knew how important it was to start saving for retirement early. Income was still limited, so I kept looking for ways to make the money stretch.

I found a roommate.

That one decision checked every box. It created extra tax-free cash flow. It didn’t require any additional work on my part.

And as an added bonus, she had a dog. And so did I. Now, when I had to travel for work, I had a built-in dog sitter. No kennel costs. No extra coordination.

That was a true trifecta.

I kept roommates for nearly the next fifteen years.

And dogs.

A Quick Note on Dogs

If you love dogs, I don’t recommend adding up what they cost. I did it once. It wasn’t pretty.

But for me, not having a dog would have been the opposite of personally beneficial. They’re good for my mental health.

That made them non-negotiable.

I suppose this is an unspoken part of my trifecta theory­—if a decision adds to one or two categories, but subtracts so much from the third that the sum is negative—well, that isn’t a good decision.

Another Trifecta

In my thirties, another trifecta showed up.

Earlier in life, I had taught aerobics and kept my certification. Now, I was working at a CPA firm on the other side of town. After a year of hour-long commutes each way, I was getting tired of sitting in traffic.

Then I noticed a Gold’s Gym opening near the office.

I stopped in and applied to teach.

Two mornings a week, I taught a 6 a.m. class, which meant leaving early enough to miss traffic. Two evenings a week, I taught again, also missing the worst of the commute.

I got paid to do something I was going to do anyway. It was good for me. And it cut my commute time in half.

That one checked all the boxes.

Another trifecta.

I funneled all the teaching funds into a separate account. And eventually used that as a down payment on a house.

Enough White Socks

That same period taught me something else.

I was teaching enough aerobics classes that I constantly ran out of white socks before laundry day. Walking through Costco one day, I paused at the jumbo-sized pack of athletic socks.

At the time, that felt like a splurge. Like anyone who has grown up with scarcity, I negotiated with myself. My inner voice said,

You have enough socks. Did you really need to buy these?

The side of me that didn’t like laundry won.

It solved my problem instantly. I could now last an entire two weeks without running out of socks. This felt luxurious!

That was my first real experience that not every smart financial decision is about saving money. Sometimes spending a little has a multiplier effect. Share on X

Sometimes, joy comes from having enough white socks.

How Budgeting Evolved

By my early forties, things had changed.

I was consistently funding retirement accounts, and instead of tracking every category, I simplified. I used a spreadsheet with fixed expenses and one catch-all category: “Credit Card.”

Everything went on that card—groceries, clothes, home repairs. I paid it off each month.

For years, I capped that category at about $2,000 a month while building my business.

If something unexpected came up, like new tires or a medical bill, it simply meant less room for everything else. I logged in weekly to check the balance. If I were at or near my self-determined limit, I would pause spending until the next cycle. This was my equivalent of not walking into Walmart.

That system worked well for me—and I still use it today.

Losing—and Finding—the Trifecta

In my late forties and early fifties, as I continued building my business, duofectas and trifectas faded into the background.

My typical nature of striving for efficiency was still there, but that energy was spent at work. In my personal life, saving time took priority over saving money.

But now, at 55, I find myself coming back to the idea. And, I spend time considering how my definition of trifecta should change.

The Trifecta, Revisited

At this stage of life, money isn’t the primary constraint. Rather, my constraints are:

  • Time.
  • Energy.
  • Friction.

Since my constraints have changed, it was time to change my definition of a trifecta. Today, a trifecta is something that makes life easier, saves time, and reduces mental load.

For example, we recently moved back into a house I’ve had on Airbnb for the last three years. It’s smaller, with far less garage space than we’re used to.

We’ll live here for 14–18 months while we rebuild on another property. With a narrow time frame, it doesn’t necessarily make sense to invest in this house.

Yet, after deliberation, we realized daily life still needs to function well. So we installed a ProSlat organizer system (no affiliation) in the garage. 

Our temporary abode now feels less chaotic. We can find what we need quickly. There’s less frustration and less wasted time.

That’s a trifecta today, because it improves how life feels.

Trifecta Math

I’ve also realized trifecta math works differently now.

I’m in the office enough that regular dry cleaning is a necessity. While seemingly small, it felt draining trying to remember what I had dropped off, what needed to be picked up, and how to find time to do it on a weekend.

So I signed up for pickup and delivery.

My initial reaction to the first bill was shock. It’s nearly twice as much. My Iowa upbringing finds it unsensible to pay this much.

But this is when I realized my trifecta math must flip.

In my earlier years, the goal was to save money while gaining personal benefit and efficiency. Now, I’m willing to spend more if the gain in time and mental space more than makes up for it.

This does.

It removes friction. It frees up time. And it eliminates one more thing I have to think about.

That is a trifecta. It’s just measured differently.

What Changed?

My framework has not changed. I still look for budgeting decisions that deliver multiple benefits at once.

In my younger years, trifectas were about stretching dollars.

Today, they’re about protecting time and energy.

Conclusion

Most people think that budgets are about managing money.  What I’ve found through the evolution of my Trifecta Theory, however, is that an effective budgeting strategy has to cover a broader scope than money.

Its real worth is in managing your constraints.

As we become more financially independent, our constraints change, and an effective budgeting strategy should change with it.

Being financially independent doesn’t eliminate the need for budgeting.

It just changes the way it works.

My Trifecta Theory works well for me, and I encourage you to implement a system that helps you balance the constraints you’re facing in life.  Define your own Trifecta, and consider the trade-offs you’re willing to accept as you simplify your life. 

Life works better with the appropriate budgeting strategy, even when it has little to do with money.

Ultimately, the right budgeting strategy can help you continually improve your life, with little effort and a simple approach.

Now THAT is a perfect Trifecta!

Your Turn:  What about you?  Do you use a traditional budgeting system, or have you devised a “Trifecta” approach that helps you improve your life?  What’s your criteria for the perfect Trifecta right now?  Let’s chat in the comments…

34 comments

  1. A dear family friend told me decades ago that money has 3 purposes: health, convenience or joy. That has released me from reluctance to spend on things that truly enhance my quality of life, or spending on services I know I could do myself if that’s how I wanted to spend my time.

    Voila!

  2. My mother taught me that if I can hire out something that: (a) I hate to do; or (b) that I cannot do as well or as efficiently; or (c) where I’d need to buy special tools or supplies AND for about the same cost as I make per hour, then just pay someone. A slightly different trifecta, but as you noted, freeing up that time is worth it. She also bought white socks at Costco. ;o)

    1. Amanda, I love this. Especially the things I hate to do. When it comes to home repairs, I hate to do them, am terrible at them and of course I don’t have the tools. Great mental return on investment to hire someone for these types of things. – Dana

    2. Agree with Amanda’s comment. We saved the money to have someone paint the exterior of our house this Spring. Yes – I am perfectly capable of painting the house, but No – I don’t want to spend the time and money to rent/buy the equipment to get it done. Well worth the spend to free up my time for fun pursuits (bike, run, etc.)

      1. Ken, I’m with both you and Amanda. In my case, I started hiring someone to clean our gutters after I fell off our roof (fortunately, I landed in a big bush and walked away unscathed). One of the joys of FI is not having to do the things you can pay someone else to do, and I love Amanda’s 3 criteria (to which I’d add a 4th: you may get hurt if you do it yourself….)

  3. Why not just stay in the “Air B & B” and minimize the “house load” you carry?;). Downsizing was one of the best trifectas we ever did!

    1. We have thought about this! Who knows – maybe that is what we’ll decide. But with no children, and loving what we do, which means we’ll keep working, we figured we’d build the house and see what we think. We’re looking at is an adventure/experience vs. something we are definitively tied to.

      -Dana

  5. Another good thought provoking article Dana! Well done.

    I am mid-60’s and my spends slant almost entirely to, “does this purchase preserve time”? After all, even a billionaire can not buy more time.

    My wife and I are both from IA, north of Waterloo area. Corn and soybeans for miles. I sure am grateful I grew up there. Values and honor for miles….huh?

    Wishing all the readers out there inner peace and good health, Steve

  6. I fully agree with Sandy’s comment “money has 3 purposes: health, convenience or joy”. Since I retired age 50, my reason was to enjoy the few years my kids are still at home with me, and focus on my healthspan, and some tranquility to just enjoy life after working so hard. I use services for the things I don’t enjoy doing, such as a cleaner and outsourcing laundry. I enjoy a home delivery meal plan, where I enjoy cooking new, simple recipes a few times a week- it’s a bit more expensive than grocery shopping myself, but more of a hobby now. I splurge on a luxury gym membership with great classes and a spa- like feel with jacuzzi, hammam and saunas that keeps me enjoying staying fit. I decided to spend my savings on enjoying taking my children to experience new cultures and visit the world as teenagers, teaching them how to travel safely, how to budget travel and find deals so they can be resourceful when they travel themselves in the near future. I recognise that a new ’empty nest’ season fast approaches and I am making the most of these final, precious years of having more time with them before they fly away to their own adventures, and I start my own new chapter of slow travelling the world solo. For a while, before resting more peacefully in a beautiful place. After all, isn’t that what all those hard years of work is for? A bit if money security, sure, but it’s time to spend!

  7. My husband and I are newly retired and while tweaking our retirement budget I realized that our dogs were our second highest monthly expense, second only to healthcare. I was a bit embarrassed when I realized the exact cost of our dogs but quickly realized they are worth every penny! This morning we went on a 3 mile walk before most of the rest of the world was awake, best way to start the day, worth every penny.

    2. I also made the mistake of calculating the financial cost of a dog before realizing that the daily boost of oxytocin, the exercise, and the daily sunlight is a reasonably healthy trade off!

  8. If Quicken still worked like it did in the 90s, I’d still be using it. As they evolved, I did too. Now I am pretty much all CC – it matters not what I am spending on as long as I can pay it off each month. But I have also adopted a virtual envelope system, so there are separate accounts for property taxes, home repairs, insurance deductible, travel and car replacement. All things that might cause stress as sudden expenses.

    1. That sounds like a great way to segment it. I, too, put everything on the CC. Love using the points. I know points aren’t free but they still feel like you’re getting a deal when you use them. -Dana

  9. I had to laugh at the Walmart story – Aldi has become my Walmart. Went in there yesterday needing only 3 basic grocery items that should have added up to $20 max. Came out with $68 worth of stuff. That Aldi aisle of shame often gets me.

  10. I think the best thing in my 20’s is not owning a credit card and having to pay cash for everything. If the back was closed, I had no extra cash to spend. In my 30’s although I had a credit card I still used cash and had a rule of keeping $10,000 in the back for emergency that way I could get fired, have a car break down etc… After reading The Wealthy Barber (OK I watched the video’s via the library) I figured out the 10% saving rule and was able to buy a house. So budgets with a goal was a good approach. Now days, when my wife and I walk in the Costco, she has a rule that we stick to the list but if I stray off, I better be buying something on sale. It’s not a perfect rule but it sure keeps me from buying the store. I recently left with just a box of coffee pods and the person checking the receipts asked if I was OK, where was the shopping cart full of stuff.

    1. What a great story about Costco, Phil. I admire the way you handled things in your 20s and 30s. What a different world it would be if all young people started out with such great habits. And The Wealthy Barber is a great book! -Dana

  11. Great read as always and keep it up!

    I too have always balanced my checkbook and categorized expenses to see where money went while not really budgeting. But at an early age, I like you just piled all expenses on to my credit card and limited my monthly max and adjusted as needed. It worked great! I always paid myself first while also setting a spending discipline much like a budget.

    Now at soon to be 52, I actually started a budget foooorrrrrr, my goal to retire at 55 :). I wanted to document all expenses with still my credit card as the main flow for daily needs, but to also plug in utilities, mortgage (2.5% and will pay off as scheduled), 529 plans ect.

    With my recent meeting with my Vanguard advisor we are seeing, I’m on track and 55 will be doable with my 401k to start, bridge account as backup and saving all other retirement funds untouched and growing until 59 1/2 or later as needed.

    Again thanks for the read, you a Fritz are awesome!

    Matt

    1. Robert, ironically, I did the exact same thing, at the same age. I made it through 11 months of tracking every expense, then worked through how we envisioned our expenses would change after retirement at age 55. It was a critical step in our retirement planning, and I applaud you for the effort. It will serve you well, as painful as it may be…

  12. Trifecta means you should have 3 dogs.

    Totally agree on having a dog. Definitely not about the money when you have a dog but about life.

  13. My kids always asked if the dogs were using their college funds?! Two torn ACLs, diabetes and a rare liver disease, visits to the internist and dermatologist and on and on. We spent a tremendous amount of money on our three Bichons but the joy they brought offset the money many times over. No pup now while we hopefully get some travel in, and then it will be time. Miss having a dog terribly.

  14. Some good ideas. I just get lost when there is a mention of getting a roommate in retirement. If I were single, my privacy and space cannot be invaded by another even if I am familiar with them. Just room for the dog(s) and me. I do know other people who have roommates but those people are typically slobs themselves and don’t mind the filth that goes along with sharing living space with others – strangers or not.

  15. I liked this article. It resonated with me because I’ve had a similar experience – my priorities have shifted since I was in my 20’s. My household went from 1 to 4. It became a matter of assessing goals periodically (perhaps annually) and with my husband’s buy-in (pun intended), to ensure that we were applying our collective energy in a way that made sense. The budget, including regular money choices, is updated to align with where we find ourselves in life, while our underlying values (frugal) remain a constant friend. It also gives us grace to not feel anxious and lose sleep over things – if we’re making progress on our goals, then we’re headed in the right direction. Peace,

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