While juggling between chores, working and spending time with family, it can be hard to keep track of your monthly expenses. However, using the envelope budgeting system can be a quick and easy way to stay on top of your finances.
This technique helps you keep track of how much money you have in your budget for each expense by allocating money every month for each category. The envelope system can limit the amount you are spending and help you save more money, as well as stop making impulse purchases.
How to Start with an Envelope Budgeting System:
Come up with the categories and a budget
By creating different categories for each expense, and coming up with a budget for them, you will make sure you're not spending more than planned. Examples of categories would be groceries, gas and travel, rent and utilities and miscellaneous.
Allocate the Funds
After deciding on a budget for each category, label the envelopes and put the cash necessary for each month inside each of them.
Spend it Wisely
You can either carry envelopes with you or take the necessary amount from each envelope when it's time to go grocery shopping or pay your bills. Remember to think wisely before spending, since you won't have extra money for that category when you've exhausted the funds for that envelope.
If there is any leftover money, you can roll it over to the next month, or add it to your savings!
This free printable from Mint below will help you get started on the cash envelope system. Just print it out, and cut, fold and glue it according to the instructions.
Family Savings Challenge
Mason Jar Savings Tracker
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