[augusta]

The envelope budgeting tactic can help you save money. Just as the name implies you will need to get the number of envelopes that you would put your money for the month.

All you need do is to list out your expenses that are very important for the month. Budget the amount you want to spend on each so that you would have some savings left for you

Now grab your envelopes and write on each, the name of the expenses you had earlier listed. Example you can write on one envelope transportation, another food, another gas etc. Put your budgeted money for each expense in each envelope you had written the expense on. Now you only spend from the budgeted money in the envelope per expense till the end of the month. This means you have to be prudent with your spending so that you wouldn't finish your budgeted money each expense too fast.

if the budgeted money in the envelope gets finished then you end spending for the named expense till the next month, when you get the new salary and you make the budget again and the circles continue. This will help you not to finish all your money and your savings intact as well.

[Tendz]

Yes, envelope budgeting tactic is an easy way to save and manage our money. It will help discipline us, and we will be able to gain control of our finances.

[peachpurple]

Yes i do that 4 years ago. I found that separating the money into different envelopes help me not to overspend, and savd money

[augusta]

Yes, envelope budgeting tactic is an easy way to save and manage our money. It will help discipline us, and we will be able to gain control of our finances.

That's the whole idea you would be able to save your money as you can push new bills to the next month budgets.

[Treborika]

It's an amazing way to save money since you can't shop outside what is in the envelopes

[augusta]

It's an amazing way to save money since you can't shop outside what is in the envelopes

Yeah that's the whole idea, you limit your purchases for the period to only the budgeted funds in your envelope and that's it

[junglegal]

I used to follow that tactic. Now I budget. I create a budget in the begining of the month and i make sure I stick to it.

[Fergal]

Thanks augusta, for posting a Top 101 Money Tip. Sending ForumCoin now

[JASPREET]

I dislike this thing and I feel we can get this done even in our minds or on spreadsheets too because our aim is to save and we know what we are spending unless we don't look at the amount we are spending.

[augusta]

Thanks augusta, for posting a Top 101 Money Tip. Sending ForumCoin now

Thanks admin I got your gift. Yeah this method has really been helpful to me as I'm a lot prudent with my savings now

[Yugocean]

Good one, but you also need emergency fund, so include that too.
If you run out of budget on some day for certain thing which is still required, you will use a part of emergency fund to that envelope.

[augusta]

[quote=Yugocean]Good one, but you also need emergency fund, so include that too.
If you run out of budget on some day for certain thing which is still required, you will use a part of emergency fund to that envelope.[/quote]

Yeah you are right there should be an envelope for that, and only try to use it strictly for emergency to avoid spoiling the saving plan here.