Which Kind Of Budget Method Is Right For You?

Priority-Based Budgeting

Priority-based budgeting is traditionally employed by government entities to help them figure out where to spend their money when revenue is questionable. It’s also a method families can use at home to help prioritize their budget and what they spend by allocating their money to the most important things in the budget while completely getting rid of the rest. For example, a mortgage payment is far more important than a cable bill and internet fees. This type of budget is the most helpful tool if a family wants to use a priority-based budget to get their finances in line and pay off debt or to help plan for an unexpected lack of income. It works by making a list of every expense and keeping only those most important. Anything a family can live without should be removed from the budget, including things like a gym membership, annual passes, cable or satellite television, and even name-brand groceries where possible. Once the budget is minimized to include only the priority aspects, it helps families save and pay off debts.

Continue reading to discover details about the most popular methods of budgeting in America.