10 Budgeting Methods to Help You Take Control of Your Money


While a recent Debt.com survey found that 93% of American’s believe everyone should budget, only about 67% actually do. Furthermore, of those who don’t budget 39% said it was because they don’t make enough money and another 22% said it was because budgeting is too time-consuming. A further 16% said they don’t budget because it didn’t help them when they tried.

Budgeting Methods

If you are one of the roughly 70% of American’s who are struggling financially, you need a budget. The good news is that not all budgeting methods are created equally. It’s called personal finance for a reason, and you need to find a budgeting method that works for you. To get you started, we’ve put together a list of 10 budgeting methods to help you take control of your money,

1. Traditional Budgeting

Essentially, you list all your income and expenses, then find the difference between the two. Hopefully, when all is said and done there is some money left over. Once you know what you’re spending and where, you can set goals for what you want to spend in each category and track your spending moving forward to ensure you stay within your goal.

2. Zero-Based Budgeting

With zero-based budgeting the goal is to allocate every dollar you make so that your balance at the end of the month is zero. In other words, all the money you make every month will be going to expenses, savings, or debt repayment.  It is good for those new to budgeting and those looking to save more.

3. 50-30-20 Budgeting

Thus, this method tells you to allocate 50% of your income to needs, 30% to wants, and 20% to savings/debt. Those who are busy and big-picture thinkers might benefit most from 50-30-20 budgeting.

4. 80-20 Budgeting

This method is just like 50-30-20 but even easier. With 80-20 budgeting you allocate 20% of your income toward savings and the other 80% to everything else.  This budgeting method is best for those who want or need to keep things simple.

5. Cash Envelopes

Cash envelopes allow you to physically dole out your monthly income for various categories because you’re literally using cash and envelopes.   Cash envelopes are great for those who are hands-on, and who prefer to see and touch items.

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