min read
· Posted on
February 21, 2024

3 new budgeting methods to try in 2022

Wanna get on top of your cash this year, but don’t really know where to start? Take a look at these different budgeting methods.

What's the key learning?

  • We’ve already talked about the 50/30/20 budgeting method…but there are others out there that could work a ‘lil better for ya
  • Pay yourself first by setting aside a fixed amount to pay into your savings. Whatever's left over is for your bills and expenses
  • Switch to a cash-only budget, AKA the cash envelope system
  • If budgets aren't your thing, try the no-budget budget using automated transactions into your savings and bills accounts

Wanna get on top of your cash this year, but don’t really know where to start? We’ve already talked about the 50/30/20 budgeting method before…but there are other budgeting methods out there that could work a ‘lil better for ya.

Take a look!

#1: The pay yourself first method

The ‘pay yourself first’ budgeting technique is kinda like your average 50/30/20 budget…except you tweak things a little. 

Really, it just means instead of paying all your expenses first and saving what’s left over…you pay yourself first. That means on pay-day, you’ll set aside a fixed amount of money to pay into your savings account. Whatever’s left is for your bills and other expenses.

#2: The cash envelope method

This is all about the psychology of spending, Flux fam. Science says we spend way more money when we use our cards or PayPal accounts. So, switch to cash. Also called the ‘Envelope budget’ method, the cash-only budget sees you spending cash only. Who’da thunk it?

Essentially, you allocate your money into separate categories (i.e. groceries, transport, going out, savings). Then, you take out the exact amount of cash needed for each category and put it into separate envelopes. Then, you can only spend the money in the envelope on each category.

#3: The no-budget budget method

Budgets not for you? Fair enough. Suit yourself. Each to their own! But that doesn’t mean you can neglect your savings. And we’re definitely not saying ‘let loose’.

However, if you can’t stick to a particular budget or trust yourself to do anything manually, leave it up to the automation fairies. 

All you need to do is set up two accounts: a savings account and a bills account. Then, set up automated transactions from your everyday checking account into each account on payday. Then, get your bills directly debited from your bills account.

That way, whatever’s left in your everyday account is for you to spend as you like! And the rest is done for you.

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