Which budget method


The budget is the foundation of personal finances. It's about keeping track of your income and expenses and making a spending plan. But with so many budgeting methods, how do you choose the best one for you?

budgets 50/30/20

The 50/30/20 budget is a popular budgeting method that divides your income into three categories:

  • 50% for your needs, such as accommodation, food and utilities
  • 30% for your wishes, such as leisure, travel and shopping.
  • 20% for savings, such as retirement, emergency fund, and debt repayment .

This method of budgeting is ideal for people who want to balance their needs, wants, and savings. It's a simple, easy-to-follow budget that can help you keep your finances in check.

The envelope system

The envelope system is an accounting system that is based on the use of cash to record expenses. It is the art of dividing your income into different categories and depositing the money in separate envelopes. Each package represents a specific category, such as food, entertainment, and fuel.

This budgeting procedure is convenient for people who have difficulty keeping track of their expenses and therefore tend to overspend with their credit cards. It's also a great way to limit spending, since you can only spend the money that's in the envelope.

Unallocated budget base

Zero-based budgeting is a budgeting system that allocates every dollar of income to a single purpose. This is a budgeting method that requires you to take care of every dollar you spend and put it into a category.

This budgeting method is suitable for those who want to be in full control of their finances and are willing to spend time and effort monitoring their spending. It's a great way to find places where you can save money and lower expenses.

The so-called “pay first, pay later” budget.

The "Pay Your Expenses First" budget is a budgeting method that prioritizes savings and investments over paying off debts and other expenses. It is based on prioritizing financial goals and saving the amount of money necessary to achieve them.

This budgeting method is recommended for those who want to prioritize saving and make sure they have enough money to meet their financial goals. It is a great way to generate income and gain financial independence.

Use Allevia's online quote tool

Allevia's online budgeting app is a great option for people who need help budgeting or who are struggling financially. The application evaluates your financial situation and provides advice to improve it, thus helping you to have better control over your finances.

The Allevia app can help you with everything from tracking your spending to planning a budget and finding ways to save money. It is also free to use and is available 24 hours a day, 7 days a week.

The correct budgeting method is determined by the person's financial and personal situation. Choosing a budgeting method that works for you and your lifestyle is essential. Whether you choose the 50/30/20 envelope system, the budget, the zero-based budget, or the “pay yourself first” budget, remember that the goal is to increase your income and achieve financial independence. And if you're behind on your payments, feel free to use Allevia's online budgeting tool to move on.