4 Easy Ways to Budget Money That Actually Work
Have you ever reached the end of the month and realized you were out of money? It happens to a lot of us. And when it does, it means you need a budget.
Now, before you roll your eyes, hear me out: there is a better – and easier – way to budget your money than you’ve been taught.
There are 4 simple ways to budget that work for anyone – no matter how much or how little money you make.
Put these 4 tips to use and you’ll find your financial situation improves.

1. Keep Your Income over Your Expenses
When it comes to finding ways to budget money, the place to start is with a clear picture of your financial situation.
That means you have to know how much money you have coming in each month.
First, figure out your income (this would include wages, tips, side hustles etc).
Then, list your necessary expenses each month. Your list should include all required expenses, such as car payments, rent or mortgage, credit card payments, food, gas, and utilities.
Now, total up your required expenses for each month and subtract it from your monthly income.
You may be surprised by how much money you have left over. Where does all that extra money go?
Many of us are living beyond our means because we do not monitor our discretionary spending. Little purchases here and there (grabbing a drink with friends, an Amazon purchase, the occasional coffee) are often the culprit behind the paycheck-to-paycheck lifestyle.
Keep an eye on your discretionary spending. More on that coming up.
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3. Track Discretionary Spending
A great way to budget your money is to only track discretionary spending.
You don’t need to track your necessary expenses. That money will be spent regardless of a budget. (Not to mention, people find traditional budgeting overwhelming because there is simply so much to keep track of.)
Instead, create one budget and track only discretionary spending.
Tracking doesn’t have to be difficult. It can be as simple as scribbling in a pocket notepad, jotting them down in a free app, or using the cash-based envelope system (more on that next).
The point is to track your discretionary spending.
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4. Use a Cash-Based Envelope System
A credit card can go into debt. Cash cannot.
Try using the cash-based envelope system to budget your discretionary spending. If all of your discretionary spending is done with cash, then you can’t overspend.

You can even divide your discretionary cash into different categories (eating out, entertainment, clothing, etc.).
When you buy coffee for $10, you take the cash out of the “coffee” envelope. When your envelope is empty, it means no more coffee for the rest of the month.
The same idea works for the rest of your discretionary spending envelopes.
The envelope system helps you establish limits to your spending so you never overspend.
Pro Tip: Let your discretionary spending be a rollover budget. Whatever money is not spent gets rolled over to the next month giving you more money to spend. This strategy allows you to save for bigger purchases.

Start Budgeting and Boost Your Finances Today!
Now is the time to start budgeting and start boosting your finances.
These 3 tips are a straightforward way to take control of your finances and improve them.
- Identify your expenses and income. Know where your money is going.
- Stop tracking everything. Focus on tracking your discretionary spending
- Stop using cards when shopping and go full cash mode. Embrace the cash-based envelope system for all your discretionary spending.
You got this!

Hey there Budgeting Couple! Just finished reading your article on ways to budget money, and I must say, it’s like you crawled into my brain and pulled out all my financial thoughts!
Your insights are not only practical but also delivered in such a relatable way – it’s like getting financial advice from a good friend.
I loved your emphasis on the 50/30/20 rule. It’s such a game-changer for managing expenses and savings.
Your breakdown made it so easy to understand and apply. It got me thinking about my budget, and I’m excited to give it a shot.
Also, the idea of creating a “fun money” category is genius! It’s like permitting ourselves to enjoy life while still being responsible. Cheers to finding that perfect balance! 🥂
Your writing style is refreshing and makes what could be a dry topic genuinely engaging. Thanks for sharing your personal experiences too; it adds that extra layer of authenticity. Looking forward to more of your financial wisdom – keep those fantastic articles coming!