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5 Budgeting Techniques — Because budgeting isn’t a one size fits all
Budgeting is not a one size fits all. You need to find one that works best for your financial situation and goals. In this article, I am going to introduce you to several different budgeting techniques.
If you don’t know which method to choose, analyze your financial situation and your goals. Perhaps you’re in debt and need a system to help you decrease spending, but you do not like a rigid budget system. Or, maybe you strictly have savings goals you want to reach. Once you decide what you want to accomplish you can pick a method that works best for you.
Now, let’s take a look at the different types of budgeting techniques!
I — The Traditional Budget
The traditional budget is the most familiar and mirrors the process we reviewed in this course. With this method, you list your income, list your expenses, and find the difference. After that, you set goals for how much you want to spend in each category, such as groceries, gas, and entertainment. If you are detail oriented, this is the budget technique for you because you spend time really digging deep and analyzing how you spend your money.
