Here I note out some of the important tips
- Try to go easy with your budget, be flexible
- Choose five categories that you think important to you.
- Divide your money into the categories.
- Write down how much that you want each category on the envelope.
Keep track of Envelope ‘’deposits’’.
- Just keep track your expenses with your budget by using simple spreadsheet.
- Write down the date of the transaction on the envelope.
Fill the envelopes with cash.
The advantages of envelope budget system
The Envelope Budget system is a new way on how to develop our discipline when comes to budgeting. Some advantages in this system are:
- Allow us to track properly our spending behaviour.
- You save time upon reviewing your monthly budget.
- Make you live below your means – spend less than you earned.
- More cash involved, means that less credit usage.
- A new cool way to upgrade your traditional budgeting systems.
I think this new whole system could help with expenses that are unfixed, the figure keeps changing every month like groceries, clothes, water utility, and electric bills. I would like to implement it our budget next month, see it suitable or not with our spending behavior.
Read full article : How to create an Envelope Budgeting system.