How to Budget Using Envelopes and Cash

Learning How to Budget Using Envelopes and Cash is a great way to really get control of your personal finances once and for all.

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How to Budget Using Envelopes and Cash

savingdollarsandsense.com

Learning How to Budget Using Envelopes and Cash is a great way to really get control of your personal finances once and for all.

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The envelope system is a nearly foolproof way to stick to your budget because you can physically see exactly how much money you have at any given time. Here are the basics of using envelopes and cash to budget.

CREATE YOUR ENVELOPES

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First things first, you need to have an envelope for each category in your budget.

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For example, groceries, gifts/donations, utilities, and fuel would require four separate envelopes, each labeled on the outside, with the category.

CASH THAT PAYCHECK

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When you leave your money in the bank and use a debit card to spend your money, it can be too easy to spend more than you had budgeted.

USE YOUR ENVELOPES

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When it comes time to pay your bills or buy groceries, it is important that you use only the money from the proper envelope.

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So, if you only have thirty dollars in your fuel envelope, you can only buy up to thirty dollars worth of gas. If it is not enough, get creative, and consider other options.

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