 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: What Are Alternatives to the 50\/30\/20 Rule?\n-------------------------------------------\nThe 50\/30\/20 rule isn't for everyone, and it's worth experimenting with different approaches to see what sticks. Here are some alternative budgeting strategies:\n*   **Zero-based budgeting**: With this approach, you'll assign a function to each dollar you earn. That means you'll create many more categories than the three used in the 50\/30\/20 rule. For example, you might use \"dining out,\" \"personal care\" and \"clothing.\" If you earn $2,500 per month, you'll make a list of all your expenses, savings goals and debts, and ensure that you use your entire $2,500 (without going over). This method is best for people who won't feel overwhelmed by the record-keeping required, and whose income is relatively stable month to month.\n*   **Envelope system**: Another option is to set aside money for each of your categories in cash—in envelopes labeled for each expense—which limits your spending to the amount you've identified. This requires a high level of organization, and isn't always realistic if you pay certain bills online or by credit card.\n*   **Multiple-account budget**: You can also use your bank account to do the budgeting for you. This means creating multiple accounts—which is particularly easy at online banks—and giving them jobs, similar to the categories in the 50\/30\/20 rule. One account could be for necessities, like housing payments and utility bills; another account for savings; and another for fun stuff. You'll set up regular transfers from your main checking account to your other accounts so you can save and budget without thinking about it. END