Let’s be real. When it comes to managing money, there’s no one-size-fits-all approach. That’s why we asked our community to share their go-to budgeting methods. From the highly structured zero-based budget to the laid-back “no budget” approach, each method has its perks, depending on your lifestyle, income, and financial goals.
Whether you’re just getting started with budgeting or looking to level up your game, exploring different strategies can help you find the method that works best for you!
Last month, we polled Lunch Money users for their preferred budgeting method. Let’s look at the results!
Lunch Money reader poll results: What’s Your Preferred Budgeting Method?
| 31% | Zero-Based Budget |
| 11.3% | Reverse Budgeting (Pay Yourself First) |
| 11.3% | Envelope Method (Cash Stuffing) |
| 8% | 50/30/20 Budget Method |
| 6.5% | 75/15/10 Method (variation of the 50/30/20) |
| 32.3% | No preferred method (track spending, but don’t make a specific budget) |
Zero-Based Budget (31% of you love this one!)
The zero-based budget is a fan favorite for a reason. It’s all about being super intentional with every dollar, making the zero-based budget a powerful tool.
The goal is to assign every dollar a job, from groceries to savings to your Netflix subscription. By accounting for every dollar, you keep your spending in check and prevent impulse buys.
This method can be especially helpful if you are serious about achieving your financial goals, such as paying off debt or building an emergency fund, as it forces you to make deliberate decisions ahead of time and avoid spur-of-the-moment choices.
The downside? It can be inflexible or tedious. If you overspend in an area, you’ll have to pull from another category to cover the overspending.
Reverse Budgeting (11.3% of you dig this!)
Reverse budgeting, also known as the “Pay Yourself First” approach, was tied with the envelope method in our poll, earning 11.3% of the responses.
Reverse budgeting flips the traditional budgeting script. Instead of worrying about every expense, you save first and spend what’s left. This method works best for those who are easily covering their necessary bills and have plenty of room for discretionary spending.
If you don’t need a budget to ensure you have enough funds to pay your bills and find tracking every dollar to be too much work, reverse budgeting may be a good option for you.
The drawback is that if you aren’t careful with your spending, you may end up spending your rent money on entertainment.
Envelope Method (Cash Stuffing) (11.3% of you are all about this!)
The envelope method earned 11.3% of the responses in our poll, tying reverse budgeting.
Envelope budgeting is an old-school approach, where you literally stuff cash into different envelopes for each spending category. Want to stick to your grocery budget? Put a set amount of cash in your “groceries” envelope, and once it’s gone, that’s it until payday.
This method is ideal for individuals who prefer a hands-on approach to budgeting and appreciate having a tangible reminder of their spending limits.
A potential drawback of this method is the need to use cash, which isn’t as widely supported as it was in the past. That said, Lunch Money brings envelope budgeting into the present day by allowing you to create virtual envelopes for your spending categories, so you don’t have to handle physical cash.
50/30/20 Budget Method (8% of you keep it balanced!)
The 50/30/20 budgeting method divides your budget into three main categories: needs, wants, and savings. Then you aim to spend 50% on needs, 30% on wants, and 20% on savings. It’s a simple way to ensure you are balancing life’s essentials with fun, all while you make progress toward your financial goals.
This method is ideal for people who want to ensure their spending aligns with their values without being overly rigid.
There is a downside, however. If you have low living expenses (such as living at home as a student) or a high income, you might find that 50% for needs is too much or that you want to save more than 20%. Just remember that you can adjust the percentages to make it work for you.
75/15/10 Method (6.5% of you are into this one!)
The 75/15/10 method received 6.5% of the poll responses and is a variation of the 50/30/20 budget. In this case, the goal is to allocate 75% of your income to needs, 15% to wants, and save 10%.
If you live in an expensive city or have a tight budget, this method can help you prioritize essentials while still saving a little each month. Both the 50/30/20 and the 75/15/10 methods can be used in tandem with other budgeting methods, such as zero-based budgeting or envelope budgeting.
Like the 50/30/20 method, the drawback is that your life may not fit into these specific percentages. It’s ok to tweak the figures to meet your personal goals.
No preferred method (Track, but don’t plan) (32.3% of you prefer this!)
There is something to be said for the “no budget” budget. In fact, this was the most popular response to the poll, garnering 32.3% of the poll results. Are you surprised?
The “no budget” budget is the most flexible option of all. Instead of planning every penny, simply track your spending as it happens. It’s perfect if you are more of a free spirit when it comes to budgeting, but still want to keep an eye on your financial habits.
The “no budget” budget is a great way to get started budgeting, since it gives you an idea of how you are currently spending your money, which can lead to some powerful insights. The drawback is that without a concrete plan, you might find yourself spending money without really thinking about it.
What Budgeting Methods Does Lunch Money Support?
Good news! Lunch Money supports all the budgeting methods listed here. Whether you’re a zero-based budget pro or prefer a more laid-back tracking method, Lunch Money can help. Use it to assign every dollar a purpose or simply track your spending with a straightforward system.
You can also group categories under a main heading, making it easier to see if your spending aligns with the 50/30/20 (or 75/15/10) methods.
Summary
Regardless of the method you choose, your goal is the same: to find a system that works for you! Whether you prefer the detailed control of a zero-based budget, the simplicity of reverse budgeting, or the hands-on approach of the envelope method, there’s a style that can help you reach your financial goals.
