The Best Types of Budget Methods in 2021

What type of Budget is Right for You ? 

in this article we're talking about budgets, and specifically the different types of budgets that you can create and maintain so if you're getting ready to start your budget and you're trying to figure out which budget is best for you then make sure to read this full article.

you know you need to create a budget but now it's time for you to choose the type of budget that's best for,  you there are many to choose from and you want to choose a budget methodology that fits your personality your income type and your income level in this article we're going to review some common budget methodologies 

 The Cash Envelope Method :

in this method your income is converted into cash this means that you will physically cash your check or if you have direct deposit go to the bank and pull the money out of your account  then place your money into specific envelopes and those envelopes are broken down into certain expense categories

 this method is best for people who are used to working with cash it's considered a strict budgeting method because once cash from a particular envelope is gone there is no more money to spend this method is perfect for anyone that has trouble sticking to a budget or overspending with debit cards 

the next budgeting method is called :

 The Fifty Thirty Twenty Rule (50 / 30 / 20 rule ) :

  in this method your income is broken into three categories 50% for needs 30% for wants and 20% for saving slash debt this budgeting method is great for beginners because it doesn't require meticulous tracking of your spending .

all you have to do is make sure that you're spending correctly in these categories,
 so let's say you have 50% for your needs those items in the NEAs categories can change as long as that area of your income stays within the realm of 50% this is considered a flexible budgeting method because percentage based budgets are very easily customized this budgeted method is usually not considered good if you have a lot of debt or you want to reach some big savings goals .

The Zero Based Budget :

 and this one is very simple your income might Essure expenses needs to equal zero this method is great for people who have a set income or that can do really good estimates of their income like the cash envelope system this is considered a strict budgeting method because all of your money must be accounted for all of your income and all of your expenses must be documented and when you subtract your expenses from your income that value should be zero.
 experienced budgeters are usually most successful with this method 

Pay Yourself First Method:

 this is a very simple budgeting method where you set aside a specific amount for savings or debt and then you do whatever you want to do with the rest of the money this method is best for people who struggle with saving each month but don't really need to worry about budgeting their other expenses this is considered a really simple budgeting method because all you're worried about is reaching a savings goal or paying off debt now that you know some of the common budgeting methodologies what you need to do is think about your personality your budget should be personal to you choose the budget that is right for you and your current situation to help you with that