A Vanguard video (https://m.youtube.com/watch?v=1nprZjV_6FM) refers to 4 budgeting methods
- the envelope method
- the pay yourself first method
- 50/30/20 method
- zero based budget method
Which one is your favourite?
Edit: non-text version with a 5th method: https://www.lendingtree.com/student/simple-budget/
We use some sort of holistic approach. We don’t have specific envelopes or accounts for saving. We do have specific accounts for asset allocation although it’s not relevant for budgeting.
With practical numbers: in 2023 for instance, we set our target spending to about 25% - 30% of our income at the time. Money comes in, and as long as we control what money goes out, the rest is bound to stay saved.