Find A Budget That Works For You
Until recently, there weren’t nearly as many budgeting apps and software programs as there are now. So there’s really not any reason you shouldn’t be budgeting your money.
I went through tons of apps…a ridiculous amount, in fact, until I finally found one that works for me. Actually, I use a combination of a couple of different methods.
Envelope Method
I budget more old-school than most millennials–I use what is known as the “envelope method” of budgeting. The point of this budget is to take out cold, hard cash every month and put your allotted amount into different envelopes, which represent spending categories. When you have to take out cash, you see the money leaving the envelope, so you’re more aware of what you’re spending and how much you’re spending.
I pay many of my bills online, so this system doesn’t work for everything. I do, however, use it for the following categories:
- Eating out
- Grocery shopping
- Gas for the car
- Treats/food/toys for my cat and dog
- Clothes/and other miscellaneous shopping
Once I spend the money in these envelopes, I either have to draw from other envelopes or stop spending. I don’t use credit cards (unless they offer 5% on gas) or debit cards to spend in these categories.
YNAB
If you’ve ever checked out the site before, you’ve likely seen a couple of articles mention You Need A Budget (YNAB). What I like about YNAB is the fact that every single dollar you make has a job. I put all my money in high-yield savings accounts or towards my monthly bills. Not a cent is left unaccounted for.
I’m not going to lie, I’m cheap, so I don’t actually pay for YNAB’s software, I just stole their philosophy and used a spreadsheet to manage my expenses. But that’s also because I don’t feel comfortable linking my bank accounts, and YNAB requires that for their best plan.