Building a Budgeting Style

There’s no one “right” way to budget. The best system is the one you’ll actually stick to. Here are two of the most popular methods:

Option 1: The 50/30/20 Budget

• 50% → Needs. Rent, groceries, bills

• 30% → Wants. Fun stuff, eating out, travel

• 20% → Future You. Savings, investing, debt payoff

A great choice if you want balance between enjoying life and saving for the future.

Option 2: Pay Yourself First

• Decide how much to save first (say $200/month)

• Transfer it into savings right after payday

• Use the rest for bills, needs, and fun

Best for savers. Great if your priority is building savings or paying down debt quickly.

Option 3: Zero-Based Budgeting

• Give every dollar a job until your income minus expenses equals zero

• Assign money to savings, bills, debt, and even “fun” ahead of time

• Nothing is left unplanned

Best for detail-oriented people. Helps you see exactly where every dollar goes but can feel time-consuming if you don’t enjoy tracking.

Option 4: The 80/20 Budget

• Save 20% of your income automatically

• Spend the other 80% however you need/want

Best for simplicity. Easy to stick to if you don’t want a lot of categories.

Tips to Make Any Method Work

• Keep everyday spending in your checking account and savings in a separate account

• Automate transfers so you don’t have to rely on willpower

• Review weekly to see how you’re doing and make small adjustments

You don’t need a rigid plan, you just need a system that fits your lifestyle. Whether you prefer structure, flexibility, or simplicity, pick a method, set it up, and adjust as you go. Over time, budgeting will feel less like work and more like freedom.