Different strokes for different folks:

Here are 5 budgeting styles we love — let’s determine which is right for you! [Image] [Tello Mobile]( [Budgeting Bootcamp] Hey Penny Hoarder! See that? That’s the finish line, getting closer every day. So far, we’ve told you why you should make a budget, helped you put your finances into a basic budget format and guided you through identifying and overcoming any obstacles that might have cropped up. Now it’s time to plug your basic budget into the budgeting system that works for you. Different Types of Budgets There are tons of budgeting methods out there — do a quick Google search and you might be surprised at how many come up! But don’t worry: There’s a budgeting method out there for you — we just have to figure out which one works best. Here are five of our favorite methods: The 50/30/20 Rule Tired of feeling like you have no fun money left after creating your budget? This rule is for you. Here’s how it works: Your essential living expenses account for 50% of your budget. These expenses include rent, mortgage, utilities, groceries, auto payments/insurance, phone/internet, gas, minimum credit card and loan payments. Spending on your financial goals, such as investments and savings and debt-reduction payments above the minimum payments, should equal about 20%. Here’s the best part, though: Spending on things you don’t need gets a whopping 30% of your total budget! So go ahead and dine out, take that vacation, see a movie or grab a drink. That little bit of freedom might be the very thing that keeps you on track toward your financial goals. Need more help getting started with the 50/30/20 rule? [This post lays it all out](. The Zero-Based Budget This budget is great for folks who have been, err, winging it with their money up until now. Under a zero-based budget, every penny you make will be used in a productive manner. With this budget, you should have $0 left over after spending in each of your budget categories. Not sure where to funnel the last few dollars after paying all your bills? Start a savings account or emergency fund. [This post gives some great tips for starting a zero-based budget](. The Cash Envelope System If you tend to overspend, envelopes could be your secret weapon against blowing your budget. With the cash envelope system, you create a budget. Then, you label an envelope for each category where your spending varies (think groceries, gas, clothing and entertainment, but not your rent or car payment) and fill it with the cash you’ve budgeted. When the cash in your envelope is gone, you’re not allowed to reach for a credit card. And just like that — you’re not mindlessly spending. Interested in giving cash envelopes a go? [Learn more about this budgeting system here](. The Bare Bones Budget Sometimes, you just gotta trim all the fat from your budget and focus on the basics. It’s not deprivation; it’s discipline. This method is helpful for budgeters who are really looking to bulk up their savings — or perhaps aggressively pay down debt. It’s pretty self-explanatory: With a bare-bones budget, you cover only the expenses that are absolutely necessary. Whatever is left over, you save. Thanks to its intense focus on cutting back expenses, this method can help anyone needing a spending reset. It can also be helpful to those trying to manage their money on a low income or those with a ton of essential expenses to account for. [Read a little more about this method here](. The 60% Solution Maybe you need structure — but not too much. If you’re looking for a method of budgeting that ensures your major commitments are covered while still giving you the freedom to change up your priorities once in a while, the 60% solution is for you. This budgeting method is similar to the 50/30/20 method, but the rules are a bit different. With the 60% solution, you budget 60% of your income on expenses you’re committed to. That includes essential spending plus those expenses that are most important to you, such as your kid’s activities, a personal trainer, dues to a professional organization or monthly road trips to visit loved ones. As for the other 40% of your income? You can put that toward savings or use some of the money for discretionary spending. Richard Jenkins, the financial author who came up with the 60% solution, split his 40% into four 10% increments: retirement savings, long-term savings, short-term savings and fun money. [Learn more about the 60% solution here](. So which one will you choose? The lean, mean bare-bones machine? The more generous 50/30/20 method? The envelope system for a little extra help with self-control? Whichever you choose, start plugging in your income and expenses, and we’ll be back in our next email to give you tips on sticking to the budget you’ve created. [Tello Tips]( Even if your budgeting style is “bare-bones,” a cell phone is basically a necessity these days — especially if your family is busy and needs to keep in touch. But your phone plan shouldn’t cost you an arm and a leg. The flexible, inexpensive [phone plans from Tello Mobile are a perfect match]( for that frugal mindset. Plans start from only $5 a month — no contract and no fees whatsoever. Follow us on: [Facebook]( [Instagram]( [Twitter]( [Pinterest]( [YouTube]( [Image] The Penny Hoarder | 490 1st Ave S, Suite 800 | Saint Petersburg, Florida 33701 | United States [Update mailing preferences](. If you no longer wish to receive emails, [unsubscribe here](. Questions? View our [Privacy Policy](. [View this message in browser](.