Which Budget System is Right for You

Sticking to your budget can be hard no matter what method of budgeting you choose. However, choosing a budget that is best suited to your lifestyle and goals can make a huge impact on how well you’re able to stick to your budget. There are so many different ways and apps to budget that it can be challenging to pick one if you’re just getting started. So here is a guide to help you choose the best budget system for you!

money and budgeting how to find the right system

Which Budget System is Right for You


How we Live Debt Free Without a Budget

Don't miss that post because I explain that our family has never had a traditional budget. 

The key to successful money saving is not budgeting but knowing where your money is going. Once you know where your money is going, you can make it work for you.

Some people need a budget to keep them on track, and that's totally fine! Especially when you are just getting started with a budget. These are a few methods that are proven to be successful. Find one that is right for you.

Don't miss this: How to Live on a Budget

cash envelope money saving budget system

The Cash Envelope Method

If your goal is to help curb your spending and keep yourself from busting your budget each month, the cash envelope method is a great fit. This can help you divide up your money and see how much you have to spend in each category. You set spending limits for each expense in your budget, and when you run out, that’s it! This is great for those trying to stay out of debt or get their spending under control. There are digital envelopes that you can use if you don’t want to work with cash.

I find myself using this method when I do a monthly pantry challenge. I like to set the money aside in an envelope for me to use and see how much I have left for a given spending category. 


Zero Based Budgeting

If you are the kind of person that wants to make sure you are spending every penny wisely or extra money tempts you, having a zero-based budget can help. It lets you monitor your spending and enables you to divide and conquer your monthly income in deliberate ways. Instead of saying what’s leftover will go to savings or debt payments, you have an allotted amount right there in your budget! You budget until you run out of money. Apps such as EveryDollar are great for zero-based budgeting because they show you how much money you still have left to budget for.


The Traditional Spending Tracker

If you feel like you have a good handle on your budget already and are already pretty frugal, this is a great option! Instead of setting limits for all your spending categories, you can easily track your spending to make sure you never overspend. This method is only good if you are a very frugal person who won’t have issues or be tempted to overspend.

20 Things Frugal People Do Every Day


50/30/20 Budgeting Method

If you have a decent income and no pressing debt, the 50/30/20 method could be a good fit for you! This budgeting method breaks down to 50 being needs and bills, 30 being wants, and 20 being savings. This method should be mostly reserved for people who have a good handle on their finances and want to keep their savings goals and categories checked.

How to Live Cheap Without Feeling Cheap 

The Pay Yourself First Method

The last budgeting method is for people who want to make larger debt payments or put more into savings. This budgeting method focuses on putting money into savings or debt before putting it toward your other expenses. In this method, you are spending what you have AFTER spending instead of leaving savings for after you’ve spent your money.

 If you ever find yourself not able to stick to your budget or are having trouble keeping up with it, it could be the system that is failing you and not the budget. Of course, a budget can’t necessarily save you if you don’t stick to it but finding the right system is just as important as what’s in your budget.

The only secret to getting a handle on your finances is by knowing where your money is going. 

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Don't miss this:

The Secret Money Saving Formula No One Wants You To Know!


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