Budgeting Methods

What budgeting method do you all use and why?

I use a "Zero-Based" budget method. Basically, the money you have in income matches exactly what is going out of your account. This doesn't mean you spent all your money. For example, I put 5% of my income into a HYSA and 10% of my income into wealth building, or retirement. (I believe retirement is a scam and the whole concept is a joke.) The only part of this method that is not zero-based is miscellaneous stuff which you will be using estimates based on your past needs for fun and random things that can't be predicted.
Really, you're just putting the money where it is supposed to be spent as best as you can determine.

Dave Ramsey baby steps.. I have been able to focus and decrease my debt

Yes, Dave Ramsey baby steps. If you stick to the process you will see a change.

I have a custom Excel spreadsheet that I track every purchase, debit and deposit with.

I use a zero based budget. I have my paychecks deposited into separate accounts based on my budget categories which includes a bills account, household expenses account, entertainment account, discretionary expenses account, and savings. Any money left over at the end of the month that excess of my account cushion is transferred to savings. Also I am a month ahead on my bills and expenses, so I keep a month’s worth of expenses in each account as a cushion.

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I simply make a budget every month of my bills and expenses and pay it before anything .

To avoid temptation to easily withdraw put your allotted saved money into an account you can't remove it from easily like a Christmas Club or Goal Setter account where you have to physically go to the bank to withdraw.

And US savings bonds don't pay a lot but but you won't be cashing them in overnight either.

This program have saved me from over indulging.

To avoid temptation to easily withdraw put your allotted saved money into an account you can't remove it from easily like a Christmas Club or Goal Setter account where you have to physically go to the bank to withdraw.

And US savings bonds don't pay a lot but but you won't be cashing them in overnight either.

Is this something many banks offer?

I know folks that have successfully used the can method. by having a set of cans labelled for each type of expense. They did not useva bank to avoid the possibility of surprise bank fees.

excel spread sheet

I think my budget is some form of combination between reverse budgets and zero based budgeting. (While I would like for it to be zero-based….the miscellaneous aspect [that Nolan R pointed out] and "not knowing the full amount of income until the month is over" makes it hard for me to understand how to apply it.

Mainly, I allot myself an allowance for the month [usually about $20] for "fun" stuff, and try to save the rest (fixed and necessary variable expenses [like medicines, health care, groceries, utilities–usually in average form] set aside as "already spent".).

Instead of a spreadsheet or any specific tracking app; I just use columnar pads/bank registers/accounting ledgers to keep track of my account balances (and one "odd ball" ledger for amounts in savings for x goal only.)

Good ideas.

Excellent ideas and saving info

Testing

Whatever budgeting method you decide to use, it has to make sense to you. I created a spreadsheet years ago that I use daily (I log every cent that I spend) and I've been able to stay within my budget ever since.

I set up a second bank account and auto transfer funds so I don’t “see”them. Cant spend what you don’t see. You can also achieve this by allocating a % of your direct deposit into another bank. Or use an app like Albert which is free and prefects your income and spending and auto saves money for you.

I use YNAB. But all savings and investments come out of my check directly or are automated to come out the day I get paid.

I use excel for my zero based budget. I plan the month ahead and then go back to confirm how much I spent

I track everything in an excel spreadsheet.

Dave Ramsey?

Before the pandemic I did use the envelope system but now businesses are discouraging using cash so I've been using my debit card a lot.