There’s a great post on how to use new ways to manage your budget efficiently. Mr Debtbeater guides on how to create an envelope budget system and show you step by step using the system.
Here I note out some of the important tips
Be flexible
- Try to go easy with your budget, be flexible
Choosing categories.
- Choose five categories that you think important to you.
Calculate Amounts.
- 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.
2 Responses to The New Budgeting Approach : An envelope budget systems
Mr. Debtbeater March 24, 2008
I hope it works out for you! It’s certainly been a helpful system for us so far. Also, be sure to remember that it’s OK to change the system over time as your needs change. I wrote a follow-up post that is linked to at the end of the post you mentioned describing how we change our every month to match our needs.
You’ll have to keep us posted on how you do with it.
Tabuxander March 26, 2008
Thanks mr debtbeater. I’ll change my budget system.