![]() So instead of budgeting monthly if you are paid weekly, you would make a weekly budget each time that you get paid. In this method, you make a budget every time that you get paid. When I first got started budgeting, this was my jam! And it’s also kind of what I follow now with a mix of zero-based budgeting.īudgeting by paycheck just makes sense to me. I think that this is a great method to incorporate with other methods if you get paid biweekly, but I wouldn’t make it your only budgeting method. That way you are never trying to fully fund a big expense with one paycheck. So half of your rent, half of groceries, half of fun money. ![]() In this case, each time you get paid, you fund half of your expenses. In my opinion the 1/2 payment method works best if you are paid biweekly. So it allows you to really decide what is important to you and where you want your money to go. I love this method because it gives all of your money a purpose. Is it going toward debt? Savings? Groceries? The cat? And how much is going toward each of those things? So with the zero-based budgeting method you decide what each dollar is going to do for you. This is my favorite kind of budgeting method! (I still use this with the help of YNAB)! This might sound weird, but stick with me. So once you are done budgeting your money, your expenses should equal 0. This budget method involves assigning every single dollar in your budget a job. So even if you use this as a guide, I would dive deeper! Zero-Based Budgeting You want to know everything about your budget. ![]() Especially if you are new to budgeting, I would break those categories down a bit further to figure out what you are spending in each of those categories. I wouldn’t recommend stopping there though. This is a great budgeting method if you are just wanting an outline of how much money to put where. This method consists of putting 50% of your money toward your needs, 30% toward your wants, and 20% toward savings. Now we know the basics of budgets and how awesome they can be! But what are some types of budgets? What methods are commonly used to assign money a job? 50/30/20 Method Get started budgeting with my free budgeting printables! Types of Budgets Now that you’ve decided to budget, you will be continuously budgeting by assigning your money a job, re-assigning, and changing your budget to make it work for YOU. You don’t create a budget once, and then forget it and never look back. I prefer to think of budgeting in terms of doing something. What money are you going to save? Spend? Invest? A budget answers all of these questions and more! So now that we’ve established that budgets don’t have to be restrictive, let’s talk about what budgets are and what they can do for you!įor our purposes, we don’t need the technical, dry definitions of budgets that many in the finance world use.Īll you need to know now is that budgeting is the process of deciding where your money is going to go. Budgets make you more confident in your decisions about money. Knowing that you have control over your money, and that your money is working for you, can alleviate so much stress in your life. Let me tell you a secret: They can be the most freeing thing in the world! Unfortunately, many people think of budgets as restrictive. Often times, the word “budget” comes with a lot of pre-conceived notions and emotions.
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