How To: Never run out of money again

50/30/20, Cash Only, YNAB--there are tons of budgeting methods out there. But financial advisor Kumiko Love wasn't thrilled with any of them. So she made her own. Previously The Budget Mom (shifting to 'TBM' since this budget works for everyone) Kumiko's system combines methods.

Step 1: Track spending and get the average of several months. You can do this by hand, noting each time you spend money, or you can just comb through old bank statements. If you use a lot of cash, statements might not be enough. Where you're splurging may jump out immediately.

Step 2: Think ahead. Get a calendar and note when bills are due as well as any doctor appts, holidays, birthdays, etc which may bring additional expenses. Many people budget for a typical month but think ahead to say Thanksgiving and hosting family--you'll need to spend more.

Step 3: Budget for each paycheck. Most budgets are by month, but people tend to be paid either weekly or twice monthly. Allocating per paycheck helps you since you can keep a tighter grip on your expenses and even shift some bills around so they pay out of a different paycheck.

Unlike the 50/30/20 system, the paycheck budget doesn't dictate how much you should be spending/saving. People who find specific percentages constraining or live paycheck-to-paycheck and find percentage allocations difficult to achieve may like TBM's system.

Downside: TBM uses cash envelopes for variable expenses (like beauty or restaurants), expenses that get out of hand easily. But budgeters have had their cash stolen or lost. If the visual nature of cash helps you, try using monopoly money in your envelopes but a card to pay.

Important: Be realistic with yourself if you find you need to cut expenses. You're unlikely to prevail if you try to cut your typical spending in half in a single month. You can shop for slightly better bill plans or adjust variable expenses but slashing them is not advised.

In practice:

TBM is not perfect. But because it prioritizes bills and routine expenses, then future events, and finally debt and savings--it works well for those who live paycheck-to-paycheck. It doesn't set unrealistic expectations for debt payment or savings while teaching awareness.