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Top 5 personal budgeting plans you could do in 2022

Top 5 personal budgeting plans you could do in 2022 - We all know that 2021 was not an excellent financial year for our household budgets. And with budget 2022 happening around the corner, as you read, Singapore might go for a change in the current year for this economic growth.

And with the possible development about to occur in 2022, you might be wondering how you could, as an individual, budget your resources to fit this ever-changing economy in this day and age.

With that said, there are plenty of tried and true budgeting methods that you as an individual can start working on towards your financial goals, be it reducing your credit card bills or savings for the future.

Here are 5 different ways you could budget yourself in 2022!

1. Pay Yourself First Budget

The Pay Yourself First Budgeting may seem to contradict budgeting at first. However, it is one of the proven budgeting methods that effectively works with minimal planning than other budgeting methods. This strategy is a reverse budgeting strategy that builds your expenditure around your own goals, be it savings goals for your retirement, emergency funds or other means, instead of focusing on your fixed and variable expenses. This prioritizes your savings but does not compromise your necessary payments within the process.

2. Zero-based Budget

With this budgeting method, you are working towards a situation where no income is unaccounted for. By subtracting expenses from your monthly payment until you have the remainder left and then taking that set of funds to pay off the most crucial things that month, which will most likely down your income to zero. Hence, the name Zero-Based Budget.

How do you do this? You could start by assigning your expenses one by one to main categories like food, housing, utilities, transportation, bills, debt repayment, savings and more. After that, you assign any money left over to one of the few categories that need it most, like savings or debt repayment.

3. 50/30/20 rule

The 50/30/20 rule is an easy budgeting method that allows you to manage your money effectively by dividing your monthly after-tax income into three spending categories: 50% for needs, 30% for wants, and 20% for savings and other expenses like paying off debt. In this sense, 50% of the needs usually consists of what you need to survive, which are utility bills, groceries, minimum loan payments, and housing mortgages things along those lines.

On the other hand, 30% will go to your expenses that consists of what you want to do with the money itself like travel, entertainment and events. And lastly, 20% will go to your savings or any existing outstanding debts.

4. Envelope system

This system is a pretty old school budgeting plan that is still viable in our day and age. Consisting of dividing the cash by withdrawing all of your income into literal currency and separating them into envelopes labelled your monthly expenses. This allows you to meticulously separate your money with hands-on and concrete experience, knowing where you spend your cash.

Firstly, to apply this system, you pay off all of your fixed expenses incurred each month, including insurance, loan payments, and utilities. After that, use the envelopes to delegate variable costs that may include your expenditure, food and more.

5. Values-Based Budget

Otherwise known as value-based spending, this method involves thorough planning in your budgeting. It is based on your lifestyle and what matters to you, and through that, you could adjust your spending habits to fit your expenditure to your lifestyle.

A value-based budget helps you define what you want to spend and delegate the amount to satisfy it instead of placing it somewhere else after paying off all your prior expenses. In summary, this method hugely revolves around reallocating your funds to fit your needs.


Regardless of your decision of picking up either of these strategies, at the end of the day, the simple fact of budgeting could help you save and even make more money when done right.

And with all that said, it might be restrictive to some, but it makes up for it at the end of the day as you see your savings steadily increasing over time.

Koh Management is a Singapore based Accounting Services provider, speak to us if you require help with your accounting needs.

Top 5 personal budgeting plans you could do in 2022

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