Enneagram. Myers-Briggs. (D)ominance, (i)nfluence, (S)teadiness and (C)onscientiousness. These are just a few of the personality typing systems people obsess over. Financial experts say there are also money personality types, and knowing yours can help determine the budgeting style that’ll work best for you. So we teamed up with TD Bank to break down four popular approaches to help you find one you’ll actually stick to.
Zero-based budgeting
Who it’s best for: Detail-oriented planners who are always prepared for whatever comes next.
How it works: Every penny has a purpose with this budget style. Meaning you put a certain amount toward specific expenses every. single. month. Whether it’s for necessities like utilities or long-term goals like paying off your student loans, everything is accounted for. So no dollar gets left behind.
Related: TD Complete Checking lets you access your funds 24/7 so you’re always prepared. Just how you like it.
The 50/20/30 budget
Who it’s best for: Organized adventurers who don’t want to get into the budget weeds every month.
How it works: This style is all about assigning money for the fun stuff in life, while also saving for the future. It splits your paycheck into three categories: needs, wants, and future goals. Here’s the ideal, expert-approved breakdown:
50% goes toward necessities like rent, insurance, groceries, etc.
20% goes toward things like retirement, an emergency fund, and other major money goals.
30% goes toward anything else you want (a cute swimsuit, gifts for your pup, new earbuds, etc.).
Related: TD Complete Checking comes with a linked personal savings account, making it even easier to set cash aside no matter what you’re saving for.
Values-based budgeting
Who it’s best for: A passionate person who leads with their emotions.
How it works: This approach aligns your spending habits with your values to reduce unnecessary spending. Put simply: Let your priorities be your guide. For example, if seeing friends and family is important to you, allot more of your hard-earned cash for social activities like a music festival or a girl’s trip instead of self-care.
Related: TD Complete Checking gives you three ways to waive maintenance fees so you can spend every cent on expenses that actually matter.
The anti-budget budget
Who it’s best for: Free spirits who live confidently within their means.
How it works: Bills and savings always come first. After that, the only rule is that there are no rules. Depending on your upcoming plans or short-term goals, you might spend more on upgrading your wardrobe one month then focus on furniture for your new place the next. The world, err, your bank account is your oyster.
Related: You can start spending your paycheck up to two days early at no additional cost with TD Early Pay. Wednesday is clearly the new Friday.
theSkimm
Knowing how you tend to handle your finances can help you pick the right kind of budget. But no matter your approach, TD Complete Checking makes it easy to stay on track. Ready to take your money further? Sign up today.
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