4 Budgeting Systems You Should Know About

Assalamu Alaikum, girlies! 🌸 

Let’s talk about something that often gets a bad rap—budgeting.

Many people believe that budgeting is boring, restrictive, and only for those who are struggling financially. But those are just myths! 🧐 

Today, I’ll cover:

• What’s a Budget

• 4 Budgeting Systems

• How you Can Build a Budget that Actually Works

What Is a Budget?

First off, let’s set the record straight, a budget is a proactive plan for your money.

It’s not for stingy people, not for broke people- it’s for intentional people. “A budget is telling your money what to do, rather than wondering where it went” (John Maxwell).

If billion dollar companies have budgets to execute their projects and make better decisions, then so should you!

4 Budgeting Systems

1. EveryDollar 📝 

This zero-based budgeting system, popularized by Dave Ramsey, assigns every dollar a J-O-B. You allocate all your income to expenses, savings, and debt repayment until you have zero left to budget. It’s perfect for those who want to track every penny and avoid wasteful spending. (it’s my favorite)

2. 50/30/20 Rule 💼 

This simple approach allocates 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment. It's ideal if you want a balanced approach without too much micromanagement.

3. The Envelope System 💵 

This one’s old-school but gold! You set aside cash in envelopes for different spending categories. Once an envelope is empty, you stop spending in that category. So if you don’t mind counting pennies at the Sam’s Club register, this would be PERFECT for you

4. Pay Yourself First 💰

This method involves saving a portion of your income before you do anything else. You pay yourself by putting money into savings or investments first, then budgeting the rest. It’s perfect for those who prioritize building wealth.

How You Can Set Up a Seamless Budgeting System

Now down to real business. Here’s how you can set up a seamless budgeting system today:

1. Choose a Budgeting Method:

Pick the system that resonates with you—whether it's EveryDollar, the 50/30/20 rule, or another method. The best budget is the one you stick with- a budget is better than no budget.

2. Create a Plan & Track Transactions:

You should create your budget before the month begins. That way you have a plan prior to getting paid. Use a simple spreadsheet, a notebook, or an app to log all your income and expenses.

3.Automate Where Possible:

Set up automatic transfers to savings accounts, automatic bill payments, and use apps that automatically track your spending.

Some companies will split your direct deposit to your checking vs other accounts, ask your new work bestie- your HR rep!

4. Review and Adjust Regularly:

As the month goes, review your budget to see how you’re doing. Adjust your categories if needed, and celebrate your progress! Have some grace, it takes time to get used to.

We’ll soon be launching an appthat will make setting up and sticking to a budget even easier! 🎉 

Stay tuned for more details, and let’s get budgeting! I’ll catch you next time Inshaa Allah.

Stay Intentional,

Fatimah📊