Envelope Budgeting: Simple And Effective

If you are a working individual you need a budget. If you have money coming in from any source, you need a budget. This means everyone from the teenager flipping burgers to the retired senior citizen receiving Social Security benefits should be keeping track of their money. It is very important for businesses, no matter how large or small. For households, the envelope budgeting system is one way to handle your money. It is by far the most simple way of budgeting. You don't have to use cash for this system even though it is recommended, checks can work too if you closely monitor your checking account.

So how does this system work? Easy! Every time you get money from any source, such as income, decide how it is to be allotted among various envelopes marked for various purposes. Write down all your expenses and make an envelope for each. The money in each envelope can only be spent for that purpose, and when it's gone you are not allowed to dip into the other envelopes. For example, in order for this system to work you can't use all your spending money then grab a $20 from your light bill envelope.

It helps to be disciplined when using this system, because it is so easy to say heck with a budget and take money from any one of your envelopes for a different purpose. But think about it, paying down your credit card debt or catching up on a utility is far more important than that new shirt you wanted. To curb spending impulses, allow yourself a reasonable allowance for personal spending. Another envelope should be savings, and the contents should be deposited into your savings or investment account.

Envelope budgeting takes no fancy computer software, no complicated spreadsheets or budgeting books....just paper for notes and lots of envelopes! You might want to teach your children how to envelope budget with their allowance. And teens who enter the workforce may also find this system hassle free to use. If you can, keep your envelopes in a fireproof lock box. These boxes can be purchased at any home improvement or hardware store. This ensures no one can get their hands on your cash and if there was a disaster such as a fire or flood your money-filled envelopes would remain safe.

 

 

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Budgeting System News:

 

South Africa Budget Deficit Narrows as Economy Expands, Boosing Revenues - Bloomberg

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South Africa's budget deficit narrowed in the first four months of the fiscal year as the economy recovered .

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MyFox Detroit
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Budget Deficit: Bond Market Wants Obama To Spend More - Huffington Post (blog)

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Democrats, Republicans set to vote on competing budget plans - Los Angeles Times (blog)

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First, the good news: Nearly two months into the new fiscal year, both houses of the Legislature are planning to vote on state budget plans Tuesday. .
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Money Tree Personal Budgeting Software - Click Here

 

 

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