Embedded system designers have a variety of code execution methods to choose from: eXecute-In-Place2 (XIP), Fully Shadowed and Demand Paging. Using the best method is the key for a cost-effective solution. Each method has different implications in terms of RAM and Flash usage which directly affect the cost of the system. By choosing the best solution, the designer can realize optimal speed and chip size while reducing the Bill of Materials (BOM). This paper will explore a new type of code execution called Balanced XIP. Balanced XIP combines XIP and Demand Paging to achieve a flexible solution that can be optimized for the greatest overall performance and Flash/RAM usage to accommodate continuously changing requirements.