Are you trying to figure out how to budget your money? There are a lot of different budgeting strategies out there, and it can be tough to decide which one is right for you. Check out three popular budgeting strategies: the envelope method, the zero-based budget, and the 50/30/20 rule- So, which strategy will work best for you? Read on to find out!
1. The envelope method
This strategy involves dividing your budget into categories (e.g. rent, groceries, entertainment) and putting a set amount of cash into each envelope each month. This is a great budget approach to figure out how much you are truly spending on things.
2. 50/30/20 rule
Spend 50% of your income on necessities, 30% on wants, and 20% on savings or debt repayment. This is great for you if you need a little bit of flexibility but want to ramp up your savings.
3. The zero-sum budget
In this approach, every dollar you earn is accounted for, so you can continue to fine-tune your spending and make adjustments as needed. This is a great budget for someone who has access to budgeting tools that can help you track!
Have you tried any of these?
Each approach has its own benefits and drawbacks, so it’s important to find the one that will work best for you. If you’re looking for more on financial wellness and budgeting, be sure to check out our recent blog post on staying within budget while dealing with inflation!
Written by: Lindsey Seal, VP of Partnerships