What Method of Budgeting Will Suit me the Best?

It is important to realise that there are different methods that you can use for budgeting. This means that you will be well advised to find out about the different methods and then you will be able to pick one that you think will work well for you. It is something which should then help you to be able to more easily stick to your budgeting plan.

Spending First

Some people choose to buy all of their essentials first and then they can allocate a budget to what is left. This means that they will set up direct debits to pay everything they need and perhaps pay off their credit card in full as well and then whatever is left they can allocate, perhaps some to saving, some to repaying loans and some to spending. This works if you know that you will always be able to pay all of your essentials each month and definitely have something left over. IT is really for those people that tend to be pretty frugal and are high earners and low spenders.

Pay Yourself First

A method if you want to increase the amount of money that you have saved up is to pay yourself first. This involves making sure that you put some money into your savings account as soon as you get paid and then making sure that you spend carefully so that you can manage everything else. This ensures that you will not spend the money that you are intending to save. Some people will wait until the end of the month and see what money is left to decide how much they will save and there is always a risk that there will not be anything left and therefore they will not save anything that month. It could also be that you will end up only saving small amounts and that means that you may not build up your savings very quickly.


The idea of this type of thing although you can change the ratios is to spend 505 of your income on necessities, 30% on wants and then save 20%. It is an interesting concept but it will very much depending on your income as some people will find their income barely covers their needs and others will find it very easily covers them. Therefore, you may need to tweak the figures so that they fit in with your specific situation.

Allocate Money to Categories

Some people will split everything that they buy into categories and then allocate money to each of these so that they can then spend that money. This means that they will always know that they will have enough for each item, although there are some prices that might fluctuate, such as utility bills and so there will need to be some flexibility in the system.

It is a good idea to think about what sort of system you think will suit you. You might some flexibility or you may feel that something very specific will work better for you. It could also depend on your goal and why you are looking to budget as to which of the methods will be best for you. It is worth thinking about these and possibly about other ideas that you can think of which might help you to come up with something that will specifically suit you. You may even want to combine a few methods or change one a little bit so that it works for you and it is well worth having a good think about this. Also be open minded and check every so often to see whether you think that this idea is working or whether you think that you will need to make some changes. It might just be a few tweaks here and there or a major change – just keep experimenting until you feel you have something that works.


I like to wrote on all sorts of topics. It is something that I have done as a job for a long time now. It is great because I can do it on a freelance basis and it means that I am also able to spend time with my family, which is important. I enjoy the process of writing and explaining things but also I enjoy being able to learn lots of new things. I am often given things to write about that I know about, but sometimes I need to do research and this can be a lot of fun. T is always good to learn new things and then to write about them and is a fun highlight of my job.

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