If you plan on renting an apartment in Lubbock, you may be wondering how to balance your new expenses in a new city. Whether your ideal Lubbock apartment is a luxury apartment or a cheap apartment, having a clear budget can be helpful for anyone with financial goals. Many assume a "budget" is a one-size-fits-all regimen, but this is far from the truth. When other factors are added in, like social lives and everyday essentials, it can become tough to figure out where your expenses should go. Luckily, there are dozens of different budgeting techniques that suit various lifestyles. Here's a list of the most popular ones:
The 50/30/20 Budget
With this budgeting technique, costs are divided into three main categories that are in chronological order:
50: For all the essential expenses in your life (groceries, utilities, rent), you should not be using more than 50% of your take-home pay. Make sure to consider whether your Lubbock apartments' rent is all inclusive, or whether you need to budget separately for your utilities bill.
20: In this section, you should save a minimum of 20% of your paycheck. Use this money to go towards your savings or to pay back any debt.
30: Lastly, no more than 30% of your take-home pay should be used on lifestyle choices like entertainment, fine dining, and shopping.
With reverse budgeting, there is only one method used: savings goals. This type of budgeting technique is purely focused on one thing, which is hitting savings targets. In this budgeting technique, the key is to create aggressive savings goals instead of setting up categories to analyze your spending.
The Snowball Budget
This budgeting technique is designed for those struggling with debt and who want to pay it off through a payment system. To use this technique, you must first calculate the overall amount you owe for all your debts. Once you find this amount, decide how much income you will use to make these monthly payments to pay off your debt slowly. After this, begin applying your income towards these debts, starting with the smallest amount of debt, and making your way to the largest one.
The Envelope System
This budgeting technique is the simplest out of all the ones listed. For this technique, add up all your variable and fixed expenses. These expenses include utilities, rent, and groceries. Make sure to consider whether your new apartment in Lubbock is a furnished or not, as in this case you might want to add an additional fixed expense relating to furniture and decor. After doing this, subtract this from your income and put each payment into its own envelope. Be sure to label each envelope with its total cost and name. Once you receive a paycheck, place the amount in cash for each envelope. This technique helps ensure you have the assets you need for all your expenses and savings.
Budgeting Tools & Apps
Budgeting tools and apps aren't technically budgeting methods; however, they are worth mentioning. These apps and tools can be incredibly helpful in tracking your finances, especially on the go. Most budgeting apps can monitor your budgeting goals; some services even send you a status report at the end of each month.