Did you know there are different types of budgeting? There is.

And since there is no right or wrong answer when it comes to how you budget your money, neither is one type of budgeting.

Some methods may work better for you than others, but as long as you are sticking to it and tracking your expenses, you should have great success.

After failing to stick to a regular budget, most people think budgeting just isn’t for them and give up entirely.

If this is you, you may just not have found a budget method that works for you yet!

Plus, depending on your personality and spending habits, different types of budgeting may work better for you than others.

And, these budgeting methods of saving money are easier than you think.

These best budget types will help you get your money in order in no time.

Here are different types of budgeting to try so you can find a method that works for you!

types of budgeting

The Traditional Budget

This is the most popular option and probably the one you’re most familiar with. Other types of budgeting build off of the regular budget, so it’s no wonder that this method is so popular.

If you like categories and don’t mind sitting down for a while to do it, this is a method that will work great for you. This is best for those who have severe spending habits or are trying to pay off debt.


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Start by listing out all of your expenses; this includes extra spending as well. You can make your categories as specific or as vague as you need.

Include three columns in your budget worksheet or paper that lists the estimated amount you’ll spend, what you spent, and what is leftover. You’ll be able to see how your spending compares with your total income.

If you think this budget method is right for you, check out these budget printables.

types of budgeting

The Proportional Budget

You have likely heard of this type of budget referred to as the 80/20 or 50/30/20 budget system.

This system focuses on loose guidelines on how you should spend your money. These types of budgeting are for people who prefer a less strict approach and don’t want to spend a lot of time updating their budget.

I don’t recommend this budget to anyone who has trouble determining wants or needs.

For example, if you follow an 80/20 budget, it means you are spending 80% of your income and putting the rest into savings.

If you follow the 50/30/20 budget, it means you are spending 50% on the necessary expenses, 30% on wants, and 20% toward your savings or debt.

You can make these categories fit whatever percentage you want. These budgeting methods of saving money are less strict, but can still have a big impact on your saving and spending.

types of budgeting

Cash Only Budgeting

This type of budgeting has also been referred to as the cash envelope method.

Cash only types of budgeting focus around using actual cash for all of your purchases. This means there are no credits cards or plastic in this budget.

Each month, you separate your budget into categories and put the cash you need into an envelope, and use them to match your categories.

For example, let’s say you have $500 for groceries each month. You would take $500 out of your bank account and put it in an envelope.

Each time you go to buy groceries, you would take your grocery envelope with you. Once it’s empty, it’s empty.

This method is best for people struggling with debt, have issues controlling their spending, or who have a regular income. This is one of the best budget types for people who truly want to gain control over the spending in order to get out of debt and start saving more.

There’s even a Clip System or a Wallet System that will help you keep that cash organized!

types of budgeting

The No-Budget Budget

This budgeting method should only be used by those who are already extremely frugal. They should be acutely aware of their spending habits and naturally enjoy saving.

If you struggle with spending or overspend, these types of budgeting are not for you. I would advise severe caution with this method as it can get you in a lot of trouble if you’re not ready to handle it.

People under this category would be considered cheapskates or frugal in nature. Instead of worrying about each dime or category, they spend based on their values and what is important to them and don’t buy anything else.

These people enjoy saving money, and only spend on their needs and have minimal wants. They might not need a strict budget since their spending is so little anyway.

You now have everything you need to pick a budgeting method that works well for you!

I have just brushed the surface, and there are still way more out there.

You can change up any of these methods or even combine them to create one that works for you.

The point of a budget is to be flexible, and so can your method.

Plus, depending on your personality and spending habits, different types of budgeting may work better for you than others.

And, these budgeting methods of saving money are easier than you think.

These best budget types will help you get your money in order in no time.


YOUR TURN: Comment below with which types of budgeting you think would work for you!

types of budgeting
Different types of budgeting work for different types of people. Use these best budget types to find one that works for you! These budgeting methods of saving money will get you on the right track! Start your budgeting here!