Build a Better Budget

Hello everyone. Today I’d like to talk about budgeting a topic that we all struggle with from time but here to tell you there is hope. If you’re struggling to keep to a budget maybe you should try a different method of budgeting your money. Here are a few different styles of budgeting and managing your money.

Traditional Budgeting

The style of budgeting we’re all most familiar with. Simply subtract your monthly expenses from your monthly income and use the difference however you would like. Of course, I recommend putting at least a portion into savings. This method is great if you don’t have a lot of debt or don’t have much trouble keeping up with your money but if you have specific financial goals.

50/30/20 Technique

A budgeting technique where you spend 50 percent of your income on necessities, 30 percent on things that you want, and 20 percent on savings and paying off debt. This is known as a proportional budget and there are a number of similar styles of budgeting however this can essentially feel like a pay cut if you, like many other people have rent payments up to or in excess of 50 percent of your monthly income may simply not be practical.

Value-Based Budgeting

a style of budgeting wherein a person spends and saves according to what they value most. For example, if you are a passionate traveler or love to experience new restaurants you would build those activities into your budget. This style is great for people who already have a great grasp on where and how their money is being spent and would like to put their money where they can get their best use of it.

Envelope Budgeting

The final method of Budgeting we will discuss today is simply called Envelope Budgeting and it involves taking cash and putting it into an envelope labeled with what it will be spent on. This method is flexible but it requires the use of cash and can run into issues if you misplace the envelope.

That’s all for today. Do you have a favorite budgeting method? If so feel free to share it in the comments. Until next time.