When you hear the word “budget”, what comes to your mind? I can bet most people start to feel submerged in all the pressure of thinking about their money/spending habits. As well as, what type of budget is there? Which budget method is better? What does Dave Ramsey prefer for us to use?
With all these questions you may be asking yourself about budgeting, I am here to tell you everything you want to know about two budgeting methods of weekly vs monthly and which one Dave Ramsey prefers.
What is Weekly vs Monthly Budgeting?
There are many different types of methods when it comes to budgeting. Though the two we are here to talk about are weekly vs monthly budgeting.
What is a weekly budget? A weekly budget is a commitment to saving/managing money every week (seven days) within an entire month. This allows you to plan what you need to pay every week. Wethers it’s your utility bills, your rent, paying off your car, groceries, and so on.
What is a monthly budget? A monthly budget is the same commitment as a weekly budget except it is only done once a month. It accounts for the money that goes in and out of your financial accounts over the course of a singular month.
What Does Dave Ramsey prefer?
Even though Dave Ramsey does not mention whether he prefers month vs weekly budget, we all know that budgeting no matter what is a top priority to Dave Ramsey. We know that his preferred method is the zero based budget method. However which method you decide to go ahead and use, as long as you stay consistent with your budget and make sure you aim for your goals you will do just fine.
Now that we are at this point, we can go over two budgeting methods that Dave Ramsey approves. This will allow you to learn and figure out which is the best way that fits your financial lifestyle.
Pros and Cons of Weekly Budgeting:
Weekly budgeting can be a great method to use when it comes to tracking your spending. Though it also comes with its disadvantages as well.
When it comes to weekly budgeting, it is great for those who struggle with budgeting altogether. Since it is weekly, you have the upper hand on your goals when they’re broken up into smaller categories, and easier to manage your cash flow/expenses when looking over. Also, another great outcome of having a weekly budget is when you are going over your budget, you can change your budget based on what events or upcoming changes you may want to add to your weekly budget.
Understand the Challenges
What types of changes are we talking about? Well, for instance, if something came up the previous week and you need a cover for it as an unexpected doctor’s visit, you can make up for it in the next week. This allows you to accommodate your needs in your budget and have a smoother process for the following week when it comes to budgeting. As well as, weekly budgeting allows you to look at your budget on a regular basis so that way you are able to stay on top of things. So, whatever extra money you have leftover, you can use it for the following week on other categories in your budget or save it to the side.
Even though weekly budgeting sounds like a fantastic method to use, there are a few cons to it. Depending on your financial situation, it may not be the best way to go. It can become very stressful for many people if they don’t check regularly and may get off track of weekly budgeting. This can be a problem because if you don’t keep yourself aware of your spending, money can become very tight and leave you with little to no money at the end of the month.
Budgeting, in general, can be hard for some people to do so don’t worry if it becomes hard at first. That’s what mistakes are for, to learn from it so that way in the future when you budget you don’t make the same mistakes again.
Pros and Cons of Monthly Budgeting:
Having a monthly budget is another great tool to use to manage your money and spending habits. As well, it does come with some challenges too.
A great thing about monthly budgeting is it helps you open your eyes more to where you need to focus on better when it comes to your spending habits. When you are going over your monthly budget you have a better understanding of potential problems when it comes to money in that specific month for budgeting. This allows you to fix those certain issues and be more organized when you manage your money/set goals.
It also gives you the ability to increase your savings rate. Since it is a monthly budget, you have a greater amount of money to put towards your savings. As well as, allowing yourself to have a bit of extra money on the side that you could use for yourself or add to your budget for the next following month. While monthly budgeting, you are able to increase the amount of money that you want to pay off for your debts.
Though monthly budgeting can have many advantages for use, it also has its cons. One negative factor about monthly budgeting can be unexpected expenses that destroys your monthly budget. For example, emergency surgery, a broken air conditioner, a car crash, and more. This can really make a dent in your budget and may have to overspend on your budget that month. This will cause your budget to become rigid and little room for flexibility if one thing goes wrong. This can overwhelm you and cause a lot of stress. Budgeting is supposed to be stress-free but that is not the case all the time.
Overall thoughts
Budgeting, in general, can be a scary thing to do and may seem hard to manage at first. It is ok to step back if you start to spiral out of control with your money. Both weekly and monthly budgeting is a substantial method that anyone can use. The bottom line is it will always come down to what works best for you and what you prefer.