Rich AF USA Resources
I AM IN CHARGE OF MY MONEY: The Budgeting Section

Quiz: What is your Budgeting Type?

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In this Lesson

Budgets arent about slapping your hand out of the cookie jar. They’re more like the recipe that allows you to have the biggest, fullest, most delicious jar of cookies that you can enjoy for the rest of your life. If you’re here, that ain’t going to be you. Take this quiz to discover the best budgeting method to suit your lifestyle.

Directions: For each question, choose the option that best describes your attitude towards money and budgeting. Record your answers and find out what method suits you best at the end!

1

What is your attitude about budgets?

  1. I’m not afraid of a numbers on few spreadsheets or tracking apps 

  2. I don’t want to scrutinize every little detail, but I’ll take a look 

  3. I really hate tracking these little things – it doesn’t work for me! 

  4. I’m down to try it out

2

How do you track your finances?

  1. I like to pay attention to each dollar that I have.

  2. I care where my money goes, but prefer to keep it simple & big picture

  3. I care about spending flexibility,  yet I still want to save & invest

  4. I want to keep things as simple and clear-cut as possible

3

Which best describes your Monthly Income?

  1. My income varies a lot– I work in a job that is freelance, seasonal, commission-based, or heavily dependent on tips.

  2. My income is fixed. I know my take-home pay each month.

  3. My income is relatively stable, with minor variances sometimes

  4. I get paid twice a month on a bi-weekly basis.

4

How much control do you want over your spending?

  1. I want to know where every dollar is going– even for random expenses 

  2. I want a general overview by category and spending labels, but I’m not into super complex or organized systems 

  3. I want to set it and forget it but still meet my goals 

  4. I just want to keep things as effortless and simple as possible

5

How do you feel about planning ahead?

  1. I LOVE planning ahead. I love being organized and intentional

  2. I like to have a general plan, but I don’t ~NEED~ to strictly follow it

  3. I like to go with the flow, I’m still trying to have a good time

  4. TBH I’m a procrastinator

Mostly 1’s— Zero-Based Budgeting:

Zero-Based Budgeting is a budgeting approach where every dollar of income is allocated to specific expenses, savings, or debt payments, leaving no money unassigned.

Every dollar you take in has a specific job, even if it’s covering random expenses that you forgot about. By time time that you’ve assigned each dollar a purpose, your income minus your expenses should equal zero. Why? Because each dollar has been intentionally tracked and used for a specific function whether it’s to necessary expenses, non-negotiables, savings, and even things you forgot about. 

This is great for people who have inconsistent monthly incomes because it helps them strategize how they spend their money before their next payday. You might benefit from zero-based budgeting if your work is seasonal, freelance, or heavily dependent on tips or commissions.

Mostly 2s— 50/30/20 Budgeting:

As its name suggests, this budgeting method splits up your after-tax income into three categories:

  • 50% for needs

  • 30% for wants

  • 20% for savings and debt repayment.

This approach provides a simple framework for managing finances, promoting a balance between essential expenses, discretionary spending, and financial goals. It offers flexibility while emphasizing the importance of saving for the future.

It is best for people who would like general guidelines to see where theyre money is going– but aren’t fans of tracking every single dollar. Following the guide in Rich AF, split up your expenses into categories and then figure where they stand in relation to necessary expenses, discretionary spending, and savings.

The key here is that your spending must be equal or less than the 80% of your income (50% necessities + 30% discretionary spending). If you’re spending more than that, you will know it’s time to re-evaluate your middle 30% for the “wants.”

Mostly 3s— Reverse Budgeting:

Reverse budgeting flips the traditional budgeting approach. Instead of allocating money to specific categories and tracking spending, you start by committing a chunk of cash for savings and investment goals.  You’re then free to spend the remaining money however you’d like while also reaching your financial goals. 

This method prioritizes savings and financial objectives first, encouraging individuals to live within their means after securing their financial future. It’s a great option for those who have a tendency to overspend or take money out of their savings accounts. It’s one way to easily “set it and forget it” and get into a budgeting groove. 

Mostly 4s— Half Paycheck Budgeting:

Half-paycheck budgeting is a strategy where you budget and pay bills every time you receive a paycheck twice a month. You essentially split the cost of your bills into two lump sum payments. Your first paycheck of the month covers one half of your expenses, and the second paycheck covers the other half.

This method is great if you consider yourself a procrastinator– Think of it like a college midterm essay. By splitting up the work into even parts of effort, you’ll be able to get ahead of the stress when it comes down to deadlines.