Jason Miller 4 March, 2024
6 Minutes
Budgeting isn’t about restriction—it’s about freedom. The freedom to spend guilt-free, the peace of knowing where your money’s going, and the power to plan for the future. If you’re new to budgeting or have tried and given up before, this guide is here to show you not just how to budget—but how to find the right method for you.
Let’s face it—without a plan, money slips away. Budgeting helps you take control of your finances, avoid debt, prepare for emergencies, and work toward your goals. Whether that’s buying a home, going on vacation, or just ending the month without stress, budgeting is your blueprint for success.
Before choosing a budgeting method, you need to know where you stand.
Use a spreadsheet or app to categorize these. Awareness is step one.
Ask yourself: What do you want from your money?
Set short-term (3–6 months), medium-term (1–3 years), and long-term (5+ years) goals. These goals will influence which budgeting method suits you best.
This simple method divides your income into:
Best for: Beginners and those who want a flexible, big-picture plan.
Every dollar has a job. You assign every bit of your income to a category—spending, saving, or debt—until you reach zero.
Best for: Detail-oriented people or those trying to pay off debt quickly.
Popularized by Dave Ramsey, this method involves putting cash into envelopes labeled by category. Once an envelope’s empty, you’re done spending in that category for the month.
Best for: Overspenders or those who want to be more mindful of physical cash.
You prioritize savings and investing before spending on anything else. Whatever’s left covers your expenses.
Best for: Savers and investors focused on long-term wealth building.
You automate savings and bills, then spend the rest however you like. It’s a minimalist approach that still gets results.
Best for: People who hate traditional budgeting or want a low-effort approach.
Your budgeting style should match your personality, goals, and lifestyle. Try asking:
Tip: Don’t be afraid to combine elements. Many people start with 50/30/20 and evolve into zero-based budgeting once they’re comfortable.
Budgeting isn’t “set it and forget it.” Each month is different. Birthdays, holidays, unexpected bills—they happen. Review your spending monthly, compare it to your budget, and adjust.
Use apps like Mint, YNAB (You Need A Budget), or even Google Sheets to stay organized.
Automation is the secret weapon of successful budgeters. Set up:
Automation removes friction and ensures your goals are met even on busy days.
Tracking money can get tedious. Celebrate small wins. Paid off a credit card? Treat yourself (within reason). Saved for a trip? Book it. Budgeting should empower you—not wear you down.
There is no one-size-fits-all budget. The “perfect” method is the one you’ll stick to. Budgeting is a skill, and like any skill, it improves with time and practice.
Start simple. Adjust as needed. Stay committed.
You’ve got this.
— Jason Miller
© 2025 XYZ
All rights reserved.