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.

 


 

Money Management News:

 

NDP determined to fight Harper on next budget - CBC.ca

CBC.ca
NDP determined to fight Harper on next budget
CBC.ca
Interim NDP Leader Nycole Turmel promised on Wednesday to make Prime Minister Stephen Harper's first majority budget the "fight of her life," as the Official Opposition vowed to protect the interests of Canadian families. The interim leader, now with .
NDP calls for independent review of MP pension planCTV.ca
NDP interim leader Nycole Turmel says MP pension reform should be handled by .Toronto Star

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State Democrats sue Chiang over withheld pay from late budget - abc7.com

abc7.com
State Democrats sue Chiang over withheld pay from late budget
abc7.com
Controller John Chiang blocked lawmaker pay last year when they failed to pass an on-time budget. He's allowed to do that under Proposition 25. But the Democrats want the courts to clarify whether the voter-approved measure violates the separation of .
Democrats sue controller for halting lawmaker payNorth County Times
California Democrats sue controller for halting lawmaker paySan Jose Mercury News
Democratic leaders sue, say controller had no power to withold paySan Francisco Chronicle (blog)

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MP teaches money management
Southcote schoolchildren might be abandoning their piggy banks in favour of ISAs and high-yield bonds after lessons in money management...


Senate budget chief Alexander holds emotional meeting with prison workers - Palm Beach Post

ABC Action News
Senate budget chief Alexander holds emotional meeting with prison workers
Palm Beach Post
by Dara Kam | January 25th, 2012 As promised, Senate budget chief JD Alexander met with more than two dozen prison workers who'd traveled to the Capitol to protest a prison privatization bill approved by his committee late Wednesday afternoon.
Prison privatization, closuresTallahassee Democrat (blog)

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Obama Said to Be Readying Corporate Tax Overhaul With 2013 Budget Release - Bloomberg

Bloomberg
Obama Said to Be Readying Corporate Tax Overhaul With 2013 Budget Release
Bloomberg
The proposal will be released at about the same time as the administration's fiscal 2013 budget plan, which is scheduled to be sent to Congress on Feb. 13. The administration isn't releasing details of the comprehensive proposal, such as whether it .
Far too longHuman Events
The State of the Union is . dividedPoughkeepsie Journal

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Promotions unpopular for California firefighters earning overtime
Some of California's rank-and-file firefighters earn so much money in overtime that the state has revived pay bonuses worth thousands of dollars to lure them into management...


Women trump men in basic money management: MasterCard AP survey
MANILA, Philippines EUR” Women have stronger money management skills than men in areas such as everyday financing and planning, but struggle around more complex financial concepts, according to results of the latest MasterCard survey on Consumer Purchasing Priorities - Money Management. Respondents across seven Asia/Pacific markets were questioned on their ability to handle everyday budgeting ...


How to do the Pike Place Market on a budget - Seattle Post Intelligencer (blog)

Seattle Post Intelligencer (blog)
How to do the Pike Place Market on a budget
Seattle Post Intelligencer (blog)
Follow these tips to have fun at the Market on a budget. (Mike Urban/seattlepi.com file) Osaka Teriyaki is one of the best lunch deals in downtown Seattle. The daily special, usually chicken, is $6. Sometimes the corner of First and Pike seems like a .

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Audit finds widespread problems at Shelby County schools
An audit of Shelby County Schools' Activity and Cafeteria funds uncovered widespread money management problems and could uncover misuse of taxpayer money...


 

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