A Vanguard video (https://m.youtube.com/watch?v=1nprZjV_6FM) refers to 4 budgeting methods
- the envelope method
- the pay yourself first method
- 50/30/20 method
- zero based budget method
Which one is your favourite?
Edit: non-text version with a 5th method: https://www.lendingtree.com/student/simple-budget/
Zero based budgeting for me, though I only discovered the method I came up with myself already had an established name.
To me it's simply the most straightforward approach.
I have some kind of hybrid between no budget and pay yourself first.
I have timed the biggest bills to land just after my monthly payday, I also do my savings at that time. Whatever is left on my account is free to use. I do have a buffer account, in case the month gets too tight.
Zero based budget. Envelope method using the Goodbudget app (not really the way it’s meant to) so that my partner and I can see where we are at any given time firming the month for our “cash envelopes”.
We use “cash envelopes” for: Groceries Restaurant Entertainment Cosmetics & Toiletries Pets Gas Dry Cleaning Haircuts Blow Money