The Only Budgeting Method That Finally Worked for Me

Budgeting can often feel like a never-ending struggle—no matter how many different methods you try, sticking to one consistently is challenging. Over the years, I’ve tried every popular budgeting method out there, from the envelope system to zero-based budgeting. Each time, I’d fall off track or encounter new obstacles that made them hard to sustain. That is, until I found the one method that finally worked for me. In this post, I’ll share how I discovered the right budgeting strategy and how it transformed my financial life.

Why Traditional Budgeting Methods Didn’t Work for Me

I’m sure many of you can relate to the frustration of trying to stick to a rigid budget. I’d try a method and feel like I was doing well for a while, but then life would throw a curveball—unexpected expenses, a month of high spending, or simply losing motivation. Traditional budgeting methods like:

The Envelope System: It felt too restrictive. If I overspent in one envelope, I was left scrambling, which made me feel like I was constantly failing.
Zero-Based Budgeting: I loved the idea of assigning every dollar a job, but it felt like too much effort. I didn’t always have the time to meticulously plan out every expense.
50/30/20 Rule: While it seemed simple, it didn’t account for my fluctuating income or some of my more irregular, larger expenses.

Despite my best efforts, I couldn’t find a system that was sustainable, flexible, and truly suited my lifestyle. I needed something more adaptable and realistic.

The Method That Finally Worked for Me: The “60/30/10 Rule”

After a lot of trial and error, I stumbled upon a budgeting method that’s simple, flexible, and most importantly, works for me—The 60/30/10 Rule.

It’s an easy-to-follow structure that allocates my income into three categories: essentials, non-essentials, and savings/debt repayment. Here’s how it breaks down:

60% for Essentials: This covers my basic needs—housing, utilities, transportation, groceries, and insurance. By limiting this category to 60%, I know that my necessary expenses are covered without stretching my budget too thin. It leaves room for flexibility in my non-essential spending.
30% for Non-Essentials: This includes anything that’s not necessary but still important to my lifestyle, like entertainment, dining out, shopping, and travel. I allocate 30% for these expenses because it allows me to live comfortably without going overboard. If I need to cut back, this category is where I adjust without sacrificing my essential needs.
10% for Savings and Debt Repayment: I set aside at least 10% of my income for long-term financial goals like savings, retirement, and paying off debt. This percentage ensures that I’m building my future even while managing present-day expenses. If I have any credit card debt or loans, this is also the category where I prioritize repayments.

Why the 60/30/10 Rule Works for Me

The simplicity of the 60/30/10 rule makes it easy to implement and follow. Here’s why it works:

Flexibility: Unlike more rigid methods like zero-based budgeting, the 60/30/10 rule allows me to adapt as needed. If I end up spending more on groceries one month or want to save for an upcoming vacation, I can easily adjust the amounts in the non-essential category or redistribute funds within my savings/debt repayment bucket.
Realistic: This method reflects real life—my essential expenses like rent or utilities are always predictable, but my non-essential expenses can fluctuate. I no longer feel like I’m failing when life doesn’t go according to plan, because the categories give me room to adjust based on how I’m doing financially.
Keeps Me Motivated: By making savings and debt repayment a non-negotiable category, I feel more motivated to stay on track. It’s a reminder that my future matters, and even if I’m not perfect with my spending, I’m still working toward my financial goals.
Easier Tracking: Since I’m not tracking every dollar as I would with other methods like zero-based budgeting, I find it easier to stay on top of my finances. The categories are broad enough that I don’t need to get bogged down in the small details, but they’re specific enough that I can tell if I’m on track.

How I Make the 60/30/10 Rule Work in Practice

Track Your Income: Each month, I start by tracking my total income, including side hustles, passive income, and any bonuses. This is the base amount I use to allocate my percentages.
Pay Yourself First: Before I spend anything, I immediately put 10% into savings or debt repayment. This means that saving is a priority, not an afterthought.
Use a Budgeting App: While I don’t track every penny, I still like to have a visual representation of my spending. Apps like Mint or YNAB (You Need a Budget) help me monitor my categories and adjust my spending when needed. I can easily see if I’m getting close to my limits in non-essentials or if I need to boost my savings percentage that month.
Review Monthly: At the end of each month, I review my progress. Did I stick to my 60/30/10 rule? If I overspent on non-essentials, can I adjust next month’s budget? This monthly check-in keeps me accountable without feeling overwhelmed.

The Results: Financial Freedom Without the Stress

The 60/30/10 method has completely changed the way I approach budgeting. It’s sustainable, adaptable, and simple enough that I don’t feel like I’m sacrificing my lifestyle. While it’s still important to monitor my spending, this method has brought me financial peace of mind.

Now, I have room to splurge when I want to without guilt, while still being mindful of my financial future. By focusing on balance and flexibility, I no longer feel like I’m trapped in a never-ending cycle of trying to stick to unrealistic rules.

Final Thoughts

Budgeting doesn’t have to be a one-size-fits-all strategy. If you’ve struggled with other methods in the past, consider trying the 60/30/10 rule. It offers a simple, flexible approach that helps you manage your finances without getting bogged down in the details. The key to successful budgeting is finding what works for you—and for me, this method has been a game-changer.

Give it a try and see how it works for your lifestyle. You might just find that this method is the missing piece to your financial puzzle.