Biz Tip: Incremental-Based Budgeting
This style of budgeting is often praised for its ease. To get started, you use your current budget and apply increases or decreases to the base numbers at your discretion.
You might determine that a simple increase for Consumer Price Index (CPI) works. For updated CPI rates, visit the Bureau of Labor Statistics website. We won’t debate here whether CPI is the best method to measure inflation — that’s a whole other topic. For the purpose of creating a simplified budget process, it will work just fine.
Of course, in order to use this option, you have to already have a budget. If you’re just getting started, create a zero-based budget initially and apply incremental budgeting practices to your base budget for future years.