Courtesy of moneycrashers.com
The money envelope system is one which monies are allocated in separate labeled envelopes. It is the second step after writing out a detailed budget. The third and last step is by allocating amounts to these envelopes, you can see and feel the money to be spent. Once the monies are spent for that budget period, you must wait until the next budget period to repeat the process.
As you can see in the picture above, each envelope is labeled for what is to be spent on. I feel this is a very good system because you know that each expense is taken care of easily. In some cases, there have been people who have had monies left over which is a great thing! They immediately place that money into a jar for having money in the house or carry the amount over to the next budget. Even in some cases, spending money has an envelope as well so that the budget stays on track and no monies are taken away from it.
The envelope system is not for those who are not into details but for those who are serious about where every single dollar goes. If you use the envelope system, let me know how you are doing with it by commenting below. Until next time....
Stay Frugal and Proud,
Dot
Articles
No comments:
Post a Comment