The Three-Bucket Money Strategy: How to Plan Your Finances Like Singapore's Chocolate Finance founder Walter de Oude

Written by The Financial Coconut | Dec 18, 2025 2:32:42 AM

 

Planning your finances doesn't have to be overwhelming. On The Financial Coconut's Biggest TFC Budget Royale, founder Walter de Oude of Chocolate Finance, alongside familee.sg's Alex Lee, and Happiness Scientist Sha-En Yeo, shared practical financial planning strategies that every high-earning Singaporean professional should consider.

What emerged from their conversation wasn't just another generic financial advice session, it's knowing how to structure your approach for maximum efficiency.

The Three-Bucket Framework: Core, Store, and Explore

Walter de Oude, who previously founded and successfully exited SingLife before launching Chocolate Finance, introduced what he calls the three-bucket money strategy. This deceptively simple framework transforms how you think about your finances.

"I think that everybody has got three buckets of money," Walter explains in the podcast. "You've got, number one is your cash or your core, right? You've got cash… Where does it go? It goes into the best possible returns and where you can get it anytime, right?"

Three-Bucket Framework Overview

Bucket Purpose Time Horizon Risk Level Typical Allocation
Core (Cash) Immediate liquidity + optimised returns 0-2 years Very Low 20-40%
Store (Long-term) Wealth building without daily management 10+ years Low-Medium 55-70%
Explore (Play) Calculated risk-taking and learning Variable High 5-15%

Let's break down each bucket:

Bucket 1: Core (Your Cash)

Purpose: Immediate liquidity with optimised returns

Your Core bucket is your financial foundation, your spare or idle cash, the money you need accessible immediately or in the near term. This isn't just an emergency fund sitting in your bank account earning maybe 0.05% p.a. Base interest. It's cash working intelligently for you.

What goes here:

  • Emergency fund (6-12 months of expenses)
  • Upcoming major expenses (within 1-2 years)
  • Short-term savings goals
  • Opportunity capital for sudden investments

Where to optimise: The key is finding platforms that offer both liquidity and meaningful returns. Traditional banks often fail on the returns front, requiring complex hoops to jump through for marginal improvements.

This is where Chocolate Finance has carved out its niche. Walter's platform offers:

  • 2% p.a. on your first S$20,000
  • 1.8% p.a. on your next S$30,000
  • Daily returns with no lock-ins
  • No complex criteria
  • Withdraw anytime

What your ROI would look like:

  • On S$50,000 Core bucket: S$928 annual return
  • Monthly passive income: S$76
  • Zero administrative overhead

Whilst Chocolate Finance is an investment product and not a bank, you could look at alternative places for your cash:

  • Ordinary bank account (0.05% p.a. on S$50,000): S$25 annually
  • High-yield savings account HYSA (8.05% p.a. on S$100,000): S$8,050 but requires salary crediting, minimum spending, insurance/investment products
  • Time cost: depending on the product, estimated at potentially 2-3 hours monthly managing requirements = 30+ hours annually

For busy professionals earning S$150,000-500,000 annually, the opportunity cost of managing multiple banking relationships can often be frustrating. Chocolate Finance also includes the Chocolate Top-Up Programme; if the portfolio underperforms during the Qualifying Period, they'll top up the difference. This provides downside protection on your Core bucket whilst maintaining full liquidity through withdrawal processing typically takes 3 business days, but can take longer in some circumstances.

 

Additional Core advantages with Chocolate:

  • Chocolate Visa debit card with competitive FX rates for international spending
  • "Actually, so many times you spend money on your debit card, you get such a rubbish rate," Walter notes. "So we brought the chocolate card so that you could get one of the best FX rates around."
  • Miles accumulation, earn 1 MaxMile per dollar on your first $1000 per month with HeyMax on all spending with minimal category restrictions

The Core bucket principle: Never sacrifice accessibility for marginal returns, and never accept zero returns when better options exist.

Bucket 2: Store (Your Longer-Term Wealth)

Purpose: Growth without daily management

"The second place is your second bucket of money, your long-term. Earn some more, you know? But I don't really want to manage it every day," Walter explains. "Like CPF, but a little bit more your insurance… but money where you don't mind what it's invested in. You just want to have better return. You don't mind. It goes up and down a bit because you don't need it now. You need it later."

What goes here:

  • CPF contributions and voluntary top-ups
  • SRS contributions
  • Long-term investment portfolios (10+ year horizon)
  • Retirement funds
  • Insurance with investment components
  • Index funds and ETFs

CPF optimisation within your Store bucket: CPF provides government-guaranteed returns:

  • Ordinary Account: 2.5% p.a.
  • Special, MediSave, Retirement Accounts: 4% p.a.
  • Extra interest: Up to 6% p.a. on first S$30,000 for members 55+

Voluntary CPF top-ups offer:

  • Up to S$8,000 tax relief for self-contributions
  • Up to S$8,000 tax relief for family member contributions
  • Guaranteed returns in perpetuity

SRS contributions provide: According to IRAS:

  • S$15,300 annual contribution cap for citizens/PRs
  • Dollar-for-dollar tax relief
  • Tax savings of S$1,760-3,672, depending on your bracket
  • Only 50% of withdrawals are taxable at retirement

Store bucket allocation example for S$200,000 annual income:

  • CPF voluntary contributions: S$16,000 annually (S$8,000 own + S$8,000 family)
  • SRS maximum: S$15,300 annually
  • Additional portfolio investments: S$30,000-50,000 annually
  • Total Store bucket growth: S$61,300-81,300 per year

Walter's investment philosophy: "I'm not an Explorer; I'm not a gambler. I don't think you can time the markets. I think people that try generally lose out. There's so many people in the world whose job is to invest. How can we as just ordinary guys do a better job than those guys?"

This bucket embraces:

  • Long-term thinking over market timing
  • Passive strategies over active trading
  • Consistent contributions over lump-sum gambling
  • Diversification over concentration

Bucket 3: Explore (Your Play Money)

Purpose: Calculated risk-taking and learning

"And then the final bucket of money is the play money, like your gamble money, your… ‘let me buy Bitcoin, Tesla, Apple, gold,’ whatever's the flavour of the month is," Walter describes.

What goes here:

  • Individual stock picks
  • Cryptocurrencies
  • Alternative investments
  • Speculative ventures
  • Learning investments

Critical rules for the Explore bucket:

  1. Never exceed 10-15% of your total portfolio
  2. Only invest what you can afford to lose completely
  3. Treat it as tuition for financial education
  4. Don't raid other buckets to chase "opportunities"

Why this bucket matters: Psychologically, humans need some element of excitement and urgency in their financial lives. Rather than suppressing this completely (which often leads to secret gambling or overexposure), the Explore bucket provides a controlled outlet.

"So, I think what people should do is actually plan for how much money they want to put in each of these buckets," Walter emphasised. "That's the simplicity of it, because how many people say, ‘Ah, the markets have gone up so much, I must put more in the market.’ And you haven't actually thought about this. What's my core, what's my store? And what's my explore?"

Explore bucket allocation example:

  • Professional earning S$250,000 annually
  • Total investable assets: S$500,000
  • Core allocation: S$100,000-150,000 (20-30%)
  • Store allocation: S$300,000-375,000 (60-75%)
  • Explore allocation: S$25,000-50,000 (5-10%)

The Anti-Timing Philosophy: Why Most People Lose

Walter's perspective on market timing:

"I don't think you can time the markets. I think people that try generally lose out... There's so many people in the world whose job it is to invest. How can we as just ordinary guys do a better job than those guys? And remember, if some guy's making money, someone else is not necessarily making the same. There's a, there's two sides to every trade, right?"

This philosophy aligns with decades of SPIVA research showing that:

  • 80-90% of active fund managers underperform their benchmarks over 10+ years
  • Individual investors underperform even worse due to emotional decision-making
  • Transaction costs and taxes erode returns from frequent trading
  • Time in the market beats timing the market

Practical application: Rather than asking "Should I invest now or wait for a correction?", ask "How much should be in each bucket?" Then systematically contribute to each bucket regardless of market conditions.

Beyond Money: The Holistic Financial Plan

What distinguished this TFC Budget Royale conversation from typical financial advice was the emphasis on life balance alongside financial strategy.

Sha-En Yeo, known as the Happiness Scientist, contributed crucial context: "When I came back I was like, Ooh. And that has affected the way that I look at concepts like happiness and what does success actually mean."

Her recommendation for professionals feeling burnt out: "It comes down to the micro practices that you do because obviously the environment does make a difference. And I will say that they need to draw a line that tells them, like, oh, at this point, when the line is crossed, I will leave. But if I haven't reached that threshold, then what can I do that's within my own control or influence to make my day just that little bit better?"

She advocates for small, compounding improvements: "Little practices over time that boost your wellbeing and energy actually have that compounding effect. Like atomic habits, 1% everyday leads to exponential growth, right?"

Financial planning with life integration:

  1. Set clear thresholds: Know your walk-away point from jobs, investments, or situations
  2. Daily micro-improvements: Small actions compound into significant life changes
  3. Physical wellness investment: Exercise enhances all aspects of life, including financial decision-making
  4. Family time allocation: Non-financial wealth matters

Alex Lee, father of familee.sg, added his perspective on priorities: "I think our family is the most important to me. Family share cliche. Yeah. But because the thing is like, uh, my, my elder son is going to his teenage year soon, already next year... So I want to spend a lot more time with him."

The time-money trade-off: High-earning professionals often optimise for money at the expense of time. But time, unlike money, cannot be recovered. Your financial plan should explicitly account for:

  • Time with aging parents
  • Children's developmental windows
  • Personal health and fitness
  • Relationships and social connections
  • Personal development and learning

Implementing Your Three-Bucket Strategy: A Practical Guide

Step 1: Calculate your current allocation

Take inventory of all your assets:

  • Cash and savings accounts
  • CPF balances
  • SRS account
  • Investment portfolios
  • Property equity
  • Business investments
  • Cryptocurrencies and speculative assets

Categorise each into Core, Store, or Explore.

Step 2: Determine your ideal allocation

Conservative allocation (Risk-averse professionals, nearing retirement):

  • Core: 30-40%
  • Store: 55-65%
  • Explore: 5%

Balanced allocation (Mid-career professionals, 35-50 years old):

  • Core: 20-30%
  • Store: 60-70%
  • Explore: 10%

Aggressive allocation (Young professionals, 25-35 years old):

  • Core: 15-20%
  • Store: 65-75%
  • Explore: 10-15%

Step 3: Execute the rebalancing

For your Core bucket:

  1. Calculate 6-12 months of essential expenses
  2. Add any planned major expenses (next 1-2 years)
  3. Take a look at Chocolate Finance account for happy daily returns on your idle cash
  4. Consider the Chocolate Visa debit card for spending and travel

For your Store bucket:

  1. Maximise SRS contributions (S$15,300 annually)
  2. Consider voluntary CPF top-ups (up to S$16,000 for tax relief)
  3. Set up automatic monthly investments into diversified index funds or retirement fund-like accounts.
  4. Review insurance adequacy (life, critical illness, disability income)

For your Explore bucket:

  1. Set a strict cap (10-15% of total portfolio)
  2. Create a separate brokerage account to avoid temptation
  3. Treat losses as tuition fees for learning
  4. Review quarterly and rebalance if it grows beyond your cap

Step 4: Automate and review

  • Set up monthly automatic transfers to each bucket
  • Quarterly reviews to rebalance if drift exceeds 5%
  • Annual comprehensive review with adjustments for life changes
  • Celebrate milestones and progress

The Chocolate Finance Advantage in Your Core Bucket

Let's get specific about why Chocolate Finance makes compelling sense for your Core bucket, especially compared to other places you could put your spare cash

Scenario: Professional with S$100,000 Core bucket

Option A: Bank account (0.05% p.a.)

  • Annual return: S$50
  • Liquidity: Immediate
  • Effort: None

Option B: High-yield savings account HYSA (potentially 8.05% p.a. maximum)

  • Potential annual return: S$8,050
  • Requirements: Salary credit S$6,800+, credit card spending S$2,000+, insurance/investment products
  • Time investment: Estimated potential of 3 hours monthly = 36 hours annually
  • Opportunity cost (at S$150/hour): S$5,400
  • Net value after time cost: S$2,650
  • Liquidity: Immediate but conditional

Option C: Chocolate Finance (S$50,000) + bank account (S$50,000)

  • Chocolate return on S$50,000: S$928 bank account on S$50,000: S$25
  • Total return: S$953
  • Time investment: 10 minutes setup
  • Liquidity: typically 3 business days for Chocolate portion + immediate for remainder
  • Value proposition: Excellent for time-sensitive professionals

Option D: Split strategy (S$50,000 Chocolate + S$50,000 high-yield)

  • Chocolate: S$928 (zero effort)
  • High-yield on S$50,000: S$4,025 (full management required)
  • Total: S$4953
  • Balanced approach: Maximise returns whilst reducing administrative burden by 50%

Chocolate Finance's unique position:

  • No SDIC protection (not a bank), but funds held in custody by HSBC, State Street, BNP Paribas, Citibank
  • Ring-fenced structure protects customer assets
  • Top-Up Programme provides downside protection during Qualifying Period
  • FX rates among the most competitive in Singapore
  • HeyMax Miles accumulation with minimal category restrictions

As Walter notes in the podcast, "So chocolate now has done a really great job on the cash piece. Currently supporting 2% p.a. returns in Singaporean dollars and 4.1% p.a. US dollars. And that works. We've proven it, you know, rates have come down in the market. We've maintained a spread above wherever the market rates are."

For USD diversification:

  • 4.1% p.a. on first US$20,000
  • 3.8% p.a. on next US$30,000


Common Mistakes to Avoid in Three-Bucket Planning

  1. Raiding your Core bucket for "opportunities"
    The moment you compromise liquidity for speculative gains, you've violated the Core bucket principle. Keep it sacred.

  1. Over-allocating to Explore
    Greed tells us we should have more in high-risk assets when markets surge. Discipline says stick to your allocation.

  1. Neglecting rebalancing
    Markets move. Your Explore bucket might balloon to 25% of your portfolio during a bull run. Rebalance annually.

  1. Chasing yields without considering liquidity
    A 6% fixed deposit with a 5-year lock-in isn't a Core bucket asset—it's Store bucket money.

  1. Comparing your Explore returns to others'
    Someone bragging about crypto gains likely isn't mentioning their losses. Focus on your overall portfolio performance.

  1. Forgetting that time is finite
    Financial planning serves life, not the reverse. Walter's emphasis on exercise, family time, and personal goals reflects this wisdom.

Your Financial Planning Checklist

Before Year-End:

  • Calculate current three-bucket allocation
  • Consider a Chocolate Finance account for Core bucket optimisation
  • Maximise SRS contributions (S$15,300) for tax relief
  • Consider voluntary CPF top-ups (S$8,000-16,000)
  • Review and rebalance Explore bucket (cap at 10-15%)
  • Update emergency fund to 6-12 months expenses
  • Review insurance coverage adequacy

Quarterly:

  • Check bucket drift (rebalance if >5% off target)
  • Review Chocolate Finance returns and liquidity
  • Assess Store bucket performance
  • Document Explore bucket learnings
  • Adjust for life changes (new job, family, etc.)

Annually:

  • Comprehensive financial health review
  • Update bucket allocations based on life stage
  • Maximise tax-advantaged contributions
  • Celebrate progress and set new goals

Life Integration:

  • Schedule regular exercise (Walter's bicycle race example)
  • Block family time on calendar (Alex's teenage son priority)
  • Daily micro-improvements for well-being (Sha-En's atomic habits)
  • Set clear boundaries for work-life balance

The Bottom Line: Simplicity Over Complexity

What makes the three-bucket framework powerful isn't its sophistication—it's its simplicity. You don't need a finance degree or constant market monitoring. You need clarity on three questions:

  1. How much do I need immediately accessible? (Core)
  2. How much am I building for the future? (Store)
  3. How much am I willing to risk for learning and growth? (Explore)

Answer these honestly, execute consistently, and rebalance periodically. As Walter emphasises: "Planning is not just about money, it's planning for yourself, uh, as well. And so setting goals for is family and the things that you like. It is as important as the work and the money."

Your financial plan should enable your life, not consume it. The three-bucket strategy, paired with platforms like Chocolate Finance that respect your time whilst optimising your returns, provides the framework for both wealth and well-being.

Ready to hear more practical financial strategies? Listen to the full TFC Budget Royale episode on The Financial Coconut where Walter de Oude, Alex Lee, and Sha-En Yeo dive deeper into financial planning, travel hacks, and life balance strategies for Singaporean professionals.

Your money should work as hard as you do. But unlike you, it doesn't need rest. Put it in the right buckets, and let it compound whilst you focus on what truly matters.

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References:
  1. The Financial Coconut, "TFC Budget Royale Episode"
  2. Chocolate Finance, "What is Chocolate Finance?"
  3. CPF Board, "What are the CPF interest rates?"
  4. IRAS, "SRS contributions and tax relief"
  5. IRAS, "Individual Income Tax rates"
  6. S&P Dow Jones Indices, “SPIVA (S&P Indices Versus Active) Scorecards
  7. Rate Reference (as of December 2025)
    • 0.05% p.a. base rate: Standard across major Singapore banks (OCBC, POSB, UOB)

Disclaimer: Chocolate Finance is a brand of Chocfin Pte Ltd (UEN 202347190R). Chocfin Pte Ltd is licensed and regulated by the Monetary Authority of Singapore (CMS101452) to perform fund management activities. Chocolate’s returns are subject to change based on market conditions, with Chocolate top-up support offered as an incentive during the Qualifying Period, and it does not constitute a guarantee of return or capital. Returns are calculated on a compounded basis. The returns illustrated above are rounded for presentation purposes. Actual returns may differ depending on the number of days in each month.  All investments involve risk, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. Terms and conditions apply.  Before applying, you should consider carefully whether the product/service is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore.