5 Budget approaches that work

 In budget

There are a surprising number of ways one can cut on expenses, some more effective than others. While most of us never look forward to budgeting and see it as a chore, we believe budgeting can actually be fun with these ideas.

  1. Envelope system
  • Keep different envelopes in your room, each labelled as a different spending category. (Entertainment, shopping, groceries, clothing etc.)
  • Put a set amount of money from your salary into each envelope. Try to think logically when dividing your money and determine where you should spend most of your money.
  • Do not spend a cent more on a category when its envelope is empty. If you spend all of your entertainment money for the month, it’s over.
  • With this system you can track where most of your money goes and where you can cut.


  1. Make use of different accounts
  • If you don’t mind having more than one account and keep track of your expenses, this budget approach is quite straightforward.
  • Open an account just for your bill money and one for living expenses and a savings one for entertainment or college funds etc.
  • Divide your paycheck into each of these accounts.
  • Try to put away a bit of money each week to save up for that holiday you’ve been longing to take, a car or your down payment on your house.
  • You’d be surprised how much you end up saving this way and if there’s money left in any of the accounts you can continue accumulating.
  • With separate accounts you do not end up accidentally spending your electricity money on groceries for example or your clothes money on rent.


  1. The old reliable income vs expenses budgeting approach
  • Most of us have learned this budget trick at school and it has been working for that long.
  • Take an excel spreadsheet or budgeting app and make a list of all of your expenses and income.
  • Subtract your expenses from your income and you will be left with the amount of money you can save.
  • Having the numbers before you, you can logically allocate how much money to spend where and perhaps where overspending can be curbed.
  • However, you will need to keep your budget updated in order for you to access at the end of the month where you’ve saved and where you’ve overspent.


  1. 50/20/30% technique
  • 50% of your income will go towards paying for your essentials such as rent, groceries etc.
  • 20% of your income will go towards paying your debt or savings.
  • 30% is the maximum money you may spend however not for luxuries such as drinking etc.


     5. Take a look at the budget ideas we have for couples and kids!

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