Budgeting methods are strategies used to manage finances effectively. One popular method is the 50/30/20 rule, which suggests allocating 50% of income to needs, 30% to wants, and 20% to savings or debt repayment. This approach helps individuals prioritize their spending and savings goals. Another common method is the envelope system, where cash is divided into envelopes for different spending categories, such as groceries or entertainment. Once the cash in an envelope is gone, no more spending occurs in that category. This method encourages discipline and helps prevent overspending.