Beginner budgeting guide: 3 budgets that actually work
A budget is just a plan for your money before it disappears. Without a plan, money disappears anyway — you just do not know where it went.
Three budgets that actually work, ranked by how easy they are to follow.
The 50/30/20 budget (easiest)
Split every dollar three ways:
- 50% needs — phone, gas, food, school
- 30% wants — eating out, games, fun
- 20% savings — money for later
Try it with the budget calculator. Tweak until it fits your life.
Jordan earns $600/month part-time. That is $300 needs, $180 wants, $120 savings.
After a year of this, Jordan has saved $1,440 without thinking about it.
Pay-yourself-first (best if you hate budgets)
Do not track every dollar. Just do one thing: the moment money lands, send 20% to savings. Spend the rest however you want.
This is the budget for people who tried the detailed version and quit by week two. It works because it is almost no work.
Zero-based budget (most thorough)
Every dollar gets a "job" before the month begins. You write down income, then assign every dollar a category, until you reach zero left over.
This is the most powerful, and the most work. If you are a spreadsheet person, you will love it. If you are not, you will quit.
Pick one and try it for a month
- Pick one of the three above.
- Write down your monthly income.
- Run the numbers once.
- Try it for one full month before judging it.