what is the right budgeting method for you?
PYF (Pay Yourself First)
You deduct money for your savings and investments first, and what’s left over you can spend on your expenses. When you pay yourself first, you are already planning for tomorrow and not living only in the moment.
Zero Based Budgeting
This is a clear budgeting method where you tell every dollar and cent where to go until there are zero dollars left
50/30/20 Rule
Allocate 50% of your monthly income to necessities, 20% to savings and debt repayment, and 30% to wants.
The Envelope System
Practical for those who are hands on and need a rigid system that is physical to manage. You set a cash spending limit for each expense category, like groceries, fill envelopes with the allotted cash and use only that money for purchases. Once an envelope is empty, you can’t spend any more money on that particular category for the month.
Remember to select the method that best works for you, everyone’s life and values are different. Everyone’s situation is different and everyone’s goals are different. Stick to what fits your goals, situation, and values.
Check out this budgeting tricks book from Amazon.com: You Need A Budget by Jesse Mecham
