Budgeting is one of the most tedious and difficult aspects of being a fiscally responsible adult. It is one of the most underrated disciplines, while being absolutely necessary for any person hoping for some financial stability down the line. It is why so many personal finance websites have popped up—to address the lack of financial literacy in young professionals of all ethnicities and creeds. 

There are many methods out there, but few of these methods ever take into account compatibility in terms of personality type. After all, the effectiveness of these budgeting methods fit into a person’s habits. 

To that end, we have devised these three budget strategies from the best personal finance websites to match certain lifestyles and personalities. With no further ado, here they are:

1. Tracking Every Penny (TEP)

TEP is a budgeting method that involves writing down exactly how much you spend and what you spend it on. This can be done using notes on the phone, apps, Excel spreadsheets, and more. So long as you are able to keep a record of your expenditures down to the pennies, it can be effective. 

The rationale behind this incredibly meticulous methodology is to gather data regarding your spending habits. It can allow you to determine the trends and patterns in your cash flow. From there, you can make adjustments. Perhaps you’ll find that giving up your daily $4 boba tea will help you put more money towards your savings goals. 

This is perfect for people who have terrible memories, who often find themselves asking where their money went when it comes time to analyze the budget again. 

2. The Envelope Method

For those who have lived fast and loose with their money, this might be the perfect budgeting style. It involves rigorously budgeting and using actual real-life limitations to control spending. It involves putting actual money into envelopes labelled according to categories, such as utilities, rent, debts, savings, food, transportation, and gifts. By categorizing your money in this way, it’s easy to see exactly how much money is left for each category, removing the illusion that you still actually have money to spend. 

Too often do people believe in the illusion that they have more money, especially since it is right there in their wallets or in their bank accounts. This method can stop this notion from taking hold, allowing you a better grasp on your finances. 

3. The Zero-Sum Budget

The zero-sum budget has four rules:

• Allocate every dollar to a purpose. 
• Embrace your true expenses by dividing your annual expense by 12. Set these aside each month so that you will be ready to make the payment by the time it comes.
• Adjust accordingly. Be ready to adjust your categories and allocations. 
• Spend last month’s paycheck. This is the main goal of the zero-sum budget. You must be able to save enough that you are using last month’s paycheck and moving it forward in your timeline. 

This is perfect for people who don’t like to leave anything unpredictable. It has also shown success in helping people achieve financial stability by getting out of debt!

Final thoughts

Building better habits and routines is a lot easier said than done, but if you do find that a budgeting method matches your personality type, then go for it. This method will likely take hold more effectively than others, helping you achieve financial freedom and flexibility. 

If you’re looking for a personal finance website to help you out of a financial jam, send us at urbanwallet a message. We offer resources of financial literacy for urban millennials.