TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map


Columns

Counties
Texas Counties

Texas Towns
Texas Towns




Columns | Go Far With Kovar

Which budget option is best for me?

by Taylor Kovar

Hi Taylor: I'm looking at different options for budgeting software and keep hearing about various styles of budgeting. I always thought the options were to save money or spend it, but I guess there's more to it? - Diego

Hi Diego:
Budgeting can be as simple or as complicated as you choose to make it. It's almost always difficult for people whose finances aren't in great shape, but the approach you take to getting organized usually comes down to personal preference.

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.

It's essential to budget thoughtfully, so asking questions is a great place to start. Try out different things until you find what works for you, then enjoy the financial rewards. Best of luck!


Taylor Kovar January 8, 2022
More "Go Far With Kovar"
Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.


More "Go Far With Kovar" ›

More Columns

 


Texas Escapes Online Magazine »   Archive Issues » Home »
TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
Texas Counties
Texas Towns A-Z
Texas Ghost Towns

TEXAS REGIONS:
Central Texas North
Central Texas South
Texas Gulf Coast
Texas Panhandle
Texas Hill Country
East Texas
South Texas
West Texas

Courthouses
Jails
Churches
Schoolhouses
Bridges
Theaters
Depots
Rooms with a Past
Monuments
Statues

Gas Stations
Post Offices
Museums
Water Towers
Grain Elevators
Cotton Gins
Lodges
Stores
Banks

Vintage Photos
Historic Trees
Cemeteries
Old Neon
Ghost Signs
Signs
Murals
Gargoyles
Pitted Dates
Cornerstones
Then & Now

Columns: History/Opinion
Texas History
Small Town Sagas
Black History
WWII
Texas Centennial
Ghosts
People
Animals
Food
Music
Art

Books
Cotton
Texas Railroads

Texas Trips
Texas Drives
Texas State Parks
Texas Rivers
Texas Lakes
Texas Forts
Texas Trails
Texas Maps
USA
MEXICO
HOTELS

Site Map
About Us
Privacy Statement
Disclaimer
Contributors
Staff
Contact Us

 
Website Content Copyright Texas Escapes LLC. All Rights Reserved