Three Different Budgeting Methods to Try Out

Post By: Admin / USA Frugal Club

Typically speaking, budgeting does not go over well if you are simply trying to freelance it. You need to adhere to an organized budgeting strategy to successfully pull it off. There are several methods to try out, and while much of it depends on your cost of living and income (which vary from person to person), you should be able to try out a few of these options to see which works the best for you. 

50/30/20 Strategy

In this formula, 50% of your income goes into essential payments such as rent and mortgage, insurance, car payments, food, and other bills. 30 % of your income is deferred towards leisure and nonessential spending for things like clothing, dining out, and vacations. The remaining 20% must be invested however you decide in the stock market, towards your 401k, or towards an emergency fund. 


Rather than assign a percentage towards your income, the zero-based budget strategy gives every dollar intention. This way, all of your monthly income should be used towards something, with a particular dollar amount assigned to each category to fit your life. This strategy does not neglect savings and investments as part of your spending plan, however, so you will still be geared up towards the future. This strategy is perfect for instilling high levels of financial discipline. 

Paycheck Budget

With paycheck budgeting, each paycheck you receive will serve a different purpose. This can be highly effective for people who get paid weekly, as they will have new money coming into their bank account on a more frequent basis. Typically, this method involves taking one paycheck to cover all essential purchases at once, while using your following paycheck to invest or spend on leisure.