How to Choose the Right Budget System - NerdWallet

This method helps you curb your spending or stay out of debt when you don't want to track every purchase.

1. Set a limit for each expense category, like groceries.
2. Fill marked envelopes with the allotted cash and use only that money for purchases.
3. When the envelope is empty, you can't spend more.

The Goodbudget app is based on the envelope system for those who don't want to work with envelopes.

This method prioritises savings before immediate expenses.

Decide how much to put towards your monthly savings goals like retirement and an emergency fund, then use what is left.

This method makes monitoring your spending clear.

Take your monthly income and deliberately use every dollar until zero dollars are left. Log every expense to ensure you're on budget. Budget apps such as YNAB and EveryDollar can be helpful.

Personal finance software that lets you automate savings or update information on the go is helpful.

However, some people still prefer a hands-on approach, like pen and paper. Writing it down can help to feel more connected to your budget. It is also helpful if you don't feel comfortable linking your bank accounts to a budgeting service.