A Vanguard video (https://m.youtube.com/watch?v=1nprZjV_6FM) refers to 4 budgeting methods
- the envelope method
- the pay yourself first method
- 50/30/20 method
- zero based budget method
Which one is your favourite?
Edit: non-text version with a 5th method: https://www.lendingtree.com/student/simple-budget/
Zero based budgeting for me, though I only discovered the method I came up with myself already had an established name.
To me it’s simply the most straightforward approach.
Not sure where my method belongs…
I usually set aside the money for bills, set aside budget for groceries and leave some for personal things and entertainment. Everything else goes to the savings account.
I believe I’m doing the zero-based budget method. It is a chore, and certainly not for everyone, but I like to keep track of every single expense.
Do we have a non video explanation of what those methods are?
I simply don’t have a budgeting method. I just don’t spend money until I need to. That might sound incredibly simplistic, but it works for me. I have money taken out of my paycheck for 401k. I have automatic withdrawal for mortgage. And then everything else just gets paid electronically 1st week of the month. Is that a “method”? I wouldn’t call it such, but it works.
I know there are people out there who just can’t hold onto money. If they have $10 in their pocket, they’ll spend it. If they had $100, they’d spend that. It didn’t matter how much they made, they were always broke. I’ve never really understood that kind of thinking, quite honestly.
I found this with a quick search: https://www.lendingtree.com/student/simple-budget/
I have some kind of hybrid between no budget and pay yourself first.
I have timed the biggest bills to land just after my monthly payday, I also do my savings at that time. Whatever is left on my account is free to use. I do have a buffer account, in case the month gets too tight.
