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  Dr. T. Brian Routh Associate Professor of Accounting | Assessment Chair | Internal Review Board | IMA Campus Advocate – School of Business, Meredith College Do you think using a percentage-based budget strategy, such as the  50/30/20 rule  or the  70/20/10 rule , is the most effective approach? Percentage-based budgeting strategies, such as the  50/30/20 rule  (50% of after-tax income to needs/essentials, 30% to wants/discretionary spending, and 20% to savings and debt repayment) or the  70/20/10 rule  (70% to living expenses including needs and wants, 20% to savings/investments, and 10% to additional debt repayment or donations), offer structured, straightforward frameworks but are  not universally the most effective  approach. Their strength lies in simplicity, promoting quick adoption and broad awareness of spending patterns without requiring meticulous tracking. For Christians who prioritize tithing (typically 10% of gross income a...

Who should try zero-based budgeting ? Zero-Based Budgeting (ZBB) is most suitable for organizations that are looking for a  fundamental re-evaluation of their spending and operations . It's not just a tweak; it's a deep dive. Here are some scenarios where ZBB can be particularly beneficial: Organizations Seeking Significant Cost Efficiencies:  If a company is struggling with rising costs, declining profitability, or needs to find ways to free up capital for strategic investments, ZBB forces a critical examination of every expenditure. Instead of simply adjusting the previous year's budget, ZBB requires every manager to justify every dollar requested for their department. This can uncover inefficiencies and redundancies that incremental budgeting might overlook (Allen & Clifton, 2023; Coyte et al., 2022). Companies Undergoing Major Strategic Shifts or Restructuring:  When an organization is changing its strategic direction, entering new markets, or undergoing a signifi...

Dr. T. Brian Routh Associate Professor of Accounting; Assessment Director - Internal Review Board, Vice-Chair - Meredith Accounting & Finance Association, Faculty Advisor - IMA Campus Advocate – School of Business, Meredith College  Do you think  loud budgeting  is an effective strategy? Loud budgeting, the practice of openly communicating one’s financial goals and budgetary constraints to friends, family, and social circles, can be a highly effective strategy for certain individuals, particularly in the context of today’s economic and social pressures. Its effectiveness stems from several key factors. First, loud budgeting fosters accountability. By vocalizing financial priorities—such as saving for a home, paying off debt, or building an emergency fund—individuals create a public commitment that can reinforce their discipline. Behavioral economics research highlights the power of social accountability in driving behavior change, as individuals are more likely to fol...