What are some common budgeting methods (e.g. 50/30/20, envelope method)?

There are several popular budgeting methods, including:

50/30/20 method: This method suggests dividing your aftertax income into three categories: 50% for needs (housing, utilities, groceries, transportation), 30% for wants (dining out, entertainment, vacations), and 20% for savings and debt repayment.

Envelope method: This involves dividing your budgeted expenses into envelopes and only spending what is in each envelope. For example, you might have an envelope for groceries, entertainment, and transportation. Once the money in each envelope is spent, you cannot spend more in that category until the next month.

Zerobased budgeting: This method involves giving every dollar a specific job, with the goal of allocating all of your income to expenses, savings, or debt repayment. With this method, you aim to have zero dollars left over at the end of the month.

Prioritybased budgeting: This method involves ranking your expenses by priority and allocating funds accordingly. For example, you might prioritize rent, utilities, and food over other expenses, and allocate funds accordingly.

Pay yourself first: This involves setting aside a percentage of your income for savings or debt repayment before you allocate funds for other expenses.

There is no onesizefitsall approach to budgeting, so it's important to find a method that works best for your personal financial situation and goals.