this post was submitted on 20 Aug 2023
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What is your favourite budgeting method? (discuss.tchncs.de)
submitted 1 year ago* (last edited 1 year ago) by Blaze@discuss.tchncs.de to c/personalfinance@lemmy.ml
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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/

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[–] Hazdaz@lemmy.world 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.

[–] Blaze@discuss.tchncs.de 2 points 1 year ago (1 children)

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

[–] Hazdaz@lemmy.world 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.