In today’s fast-paced financial landscape, the concept of budgeting has evolved beyond mere spreadsheets and silent calculations. There are different ways to budget now and each method, distinct in its approach, offers unique advantages designed to cater to various financial goals and money management preferences.

ACCC has free budgeting tools available to everyone at consumercredit.com.

Let’s briefly explore some of the different types of budgeting that are currently shaping the way individuals and organizations manage their finances, illuminating each path with a blend of empathy, expertise, and innovation.

Types of Budgeting

Zero-Based Budgeting (ZBB)

Firstly, the Zero-Based Budgeting (ZBB) approach stands out for its meticulous nature. It demands that every dollar be justified in each new period, starting from a “zero base.” This method encourages a thoughtful examination of expenses, fostering a culture of accountability and efficiency.

The 50/30/20 Rule

Another increasingly popular budget method is the 50/30/20 rule, which simplifies the budgeting process into three broad categories: Needs, Wants, and Savings. By allocating 50% of one’s income to necessities, 30% to wants, and 20% to savings or debt repayment, this approach promotes a balanced and sustainable financial planning and overall financial lifestyle.

Envelope Budgeting

Now envelope budgeting is an age-old budgeting process now revitalized by digital solutions, offering a tangible approach to managing spending. By dividing cash into envelopes designated for specific categories, spenders can visually and physically monitor their expenditure, making it an excellent tool for those who prefer a hands-on approach to budget management and financial planning.

Free Budgeting Tools Available

Don’t forget that American Consumer Credit Counseling has budgeting tools that you can access for free!

Loud Budgeting

Next comes the realm of loud budgeting, a dynamic and interactive approach to managing your finances. This innovative method encourages openly discussing and planning your budget, whether that’s with family, friends, or financial advisors. It’s a strategy designed not just to be an expense tracker but to foster a supportive community around financial goal. But is loud budgeting the right approach for you? Let’s explore the benefits and considerations of this method to help you make an informed decision.

Loud budgeting thrives on the principle of transparency and accountability. By vocalizing your financial goals and challenges, you’re more likely to stay committed and receive valuable feedback. This method is particularly effective for individuals who benefit from external motivation and a sense of community. Discussing finances openly can also demystify financial planning, making it more accessible and less intimidating for everyone involved. Moreover, it encourages a culture of financial literacy, where sharing knowledge and experiences can lead to innovative solutions, strategies and proper money management.

Openly discussing your financial situation with others can have numerous benefits. Not only does it promote transparency and accountability, but it can also provide you with valuable insights and support. Sharing your financial goals and challenges can help you stay on track and receive different perspectives that you may not have considered on your own. Additionally, by engaging in conversations about money management, you contribute to creating a culture of financial literacy where everyone can learn and grow together. Loud budgeting is financial educational collaboration at its finest! Embracing loud budgeting can lead to a more empowered and informed approach to handling your finances, ultimately paving the way for better financial well-being and success.

Is Loud Budgeting Right For You?

However, using the loud budgeting process requires a mindful consideration of privacy and boundaries. It’s important to choose a supportive and respectful group or platform for these discussions. Not every detail of your financial life needs to be shared, and it’s crucial to find a balance that feels comfortable for you. Additionally, while external input can be invaluable, ultimately, financial decisions should align with your personal financial goals and circumstances. Therefore, it’s essential to remain discerning about the advice you choose to follow.

Loud budgeting could represent a hopeful shift towards more inclusive and supportive financial practices. Its emphasis on community, transparency, and accountability can significantly enhance the way we approach budgeting. Like any financial strategy, it’s important to weigh its benefits against your personal comfort and privacy needs. If you’re someone who thrives on community support and open dialogue, loud budgeting could be a transformative money management tool to add to your financial toolkit. As we continue to navigate the complexities of personal finance, innovative approaches like loud budgeting remind us that sometimes, the journey towards financial stability is best undertaken with others by our side. Would you try the loud budgeting method?

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Our credit counseling advice is to use SMART goals to pay off debt.

How to Plan Your SMART Goals

What do you want to achieve financially this year? Think about your savings, debt, and credit. Maybe you eventually want to buy a house, pay off credit card debt, and improve your credit score. These are great starting places, but they aren’t SMART goals by themselves. Here’s how we make them SMART:

Goal 1: Buying a Home

If your dream is to be a homeowner eventually, you can make it a reality by turning it into a SMART goal. First, be specific. There are several things you should specify when buying a home: What neighborhood do you want to live in? You might want to be in a good school district for your kids, an area close to your work, or near extended family. Next, specify how much you can afford for a house and a down payment. This makes your savings a measurable goal. You also want to make sure it’s attainable. Be realistic and honest with yourself about how much you can really afford. Finally, give yourself a timeline. Because buying a home is a major purchase, this is generally considered a long-term goal, which takes five years or more to reach. Give yourself a reasonable amount of time to save up for buying a home.

Goal 2: Pay Off Debt

Let’s break down another SMART goal: Paying off debt. Again, we start with “specific.” Most likely, you have many kinds of debt – credit cards, student loans, and maybe an auto loan. Narrow it down to be more specific. Let’s say you want to pay off your credit card debt in the coming year. Determine how much you can pay off every month and factor it into your budget. Is this something that is attainable and realistic for you to do within the next twelve months?

Goal 3: Improve Credit Score

If your credit score isn’t where you want it to be, improving it is a great goal to have! To make it a SMART goal, first figure out how many points you want to improve your credit score by or what your ideal credit score is. An example of a more specific credit score goal would be “I want to improve my credit score by 20 points” or “I want to get my credit score to 750.” This is a measurable goal, as you can check your credit score every month or so to see how close you’re getting. Next, come up with some steps to get there, such as not charging too much on your credit card (ideally under 30% of available credit) and making credit card payments on time and in full.

Where to find help with your SMART goals:

You don’t have to work towards your SMART goals alone! If you’re a first-time home buyer and need help, ACCC offers first-time home buyer classes that can help you get started! For help with paying off credit card debt, you can call one of our certified credit counselors for a credit counseling session to learn about your debt repayment options. Call 800-769-3571 to learn more. 

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.                   

ACCC has the right financial planning worksheet for your needs!

Household Budgeting Worksheet

A budget is the cornerstone of financial health. Budgets don’t have to be complicated or intimidating. The purpose of a budget is to ensure you are not spending more money than you make every month. It should include all sources of income and all your expenses every month. If you’re spending more money than you’re making, you have two options. You can either find ways to make more money, or you can find areas of your budget to cut spending. You could do a combination of the two as well.

To get started, check out our household budgeting worksheet. This is the financial planning worksheet you should start with if you are just starting out!

Daily Expense Tracker

This worksheet helps you track your daily spending. It’s easy to forget about the little purchases here and there – but very surprising to see the total accumulation at the end of the month. If you stay on track, great! But if you find yourself surprised by your credit card balance, you can use this tracker to see where you might want to cut back. 

Financial Community Guidelines

Housing, transportation, and insurance are substantial expenses to be accounted for. This budgeting worksheet lets you calculate and compare your spending to the financial community guidelines. 

Bill Paying Worksheet

Keeping track of your different bills and their due dates can be tricky, especially if you’re a beginner at managing your finances (i.e. being out on your own after graduating college). Sure, it’s a  learning curve at first, you’ll feel more organized with this bill paying worksheet!  You’ll remember when and what bills are due. 

Other Budgeting Worksheets

Another helpful financial planning worksheet that comes in handy at the start of the school year is our back to school budgeting worksheet. This worksheet can help you track how much you spend on clothes and school supplies for your children.

Our holiday budgeting worksheet can help you stick to your holiday spending budget. This worksheet takes into account all the factors that go into holiday spending, not just gifts. It includes travel expenses, gift wrap/cards, donations, party items, and more to give you a more complete budget.

We also have more worksheets here, including our debt-to-income ratio worksheet and net worth worksheet. You’re not alone if you’ve ever felt overwhelmed by tracking finances, or even just bored. But you can take the mystery out of money management with our resources, and in the end, feel more empowered! 

If you’re struggling to pay off debt, ACCC can help. Sign up for a free credit counseling session with us today!