this post was submitted on 20 Aug 2023
24 points (96.2% liked)

Personal Finance

3799 readers
1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago
MODERATORS
[email protected]
[email protected]
[email protected]
24
What is your favourite budgeting method? (discuss.tchncs.de)
submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]
19 comments fedilink hide all child comments
 

A Vanguard video (https://m.youtube.com/watch?v=1nprZjV_6FM) refers to 4 budgeting methods

  1. the envelope method
  2. the pay yourself first method
  3. 50/30/20 method
  4. zero based budget method

Which one is your favourite?

Edit: non-text version with a 5th method: https://www.lendingtree.com/student/simple-budget/

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 1 points 1 year ago (1 children)

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.

[–] [email protected] 2 points 1 year ago (1 children)

I found this with a quick search: https://www.lendingtree.com/student/simple-budget/

[–] [email protected] 1 points 1 year ago

You should update your top post and include the last one on the link you shared. Number 5 is definitely the way I roll. The "no" plan. Paying down debt is pretty much the top priority for me.