Which budget option is best for me?

1. The different systems. Not sure which names you've heard, but I most commonly see the traditional "50/30/20" budget, zero-based budgeting, and what some people call the "pay yourself first" method. The traditional is a simplified system of putting 50% of your earnings toward your needs, 30% toward the stuff you want, and 20% into savings. I push most clients toward a 70/10/10/10 (needs, wants, investments, charity), but it follows the same philosophy. Zero-based budgeting is great for people trying to overcome bad habits or who just love meticulous planning. Every time you get paid, you assign every dollar a job; everything is categorized from rent to clothing to travel to insurance, so you have to know exactly what your necessary spending is each month before you move on to the fun stuff. With the pay yourself first model, you put as much into savings as possible and then try to spend very frugally on everything else.

2. What works for you? If anyone tells you their budgeting approach is the best and will work for anyone who tries it, they're lying. A friend of mine who works for a budgeting company (YNAB) often tells potential customers that the YNAB system isn't right for everyone. It comes down to how your brain works and what's going to help you make the best financial decisions. If that means labeling a bunch of envelopes and filling them with $5 bills, so be it.

3. The bottom line. Whatever style you choose, the most important thing is setting rules and sticking to them. It's very easy to overspend and blame it on your circumstances, so you need to find a system that helps you hold yourself accountable. Some months you might not have money to put toward charity or savings, but you should at least find a method that helps you improve your situation instead of making it worse. I recommend trying the different apps with free trial periods to see what you feel comfortable with.