What is the envelope budget?
The envelope budget is a method used to maintain a personal budget. It is one of the simplest settings and the easiest to follow. The envelope budget includes the distribution of expenditure - usually a month - into different categories of expenditure. According to someone's monthly income and how many savings are required per month, each category of expenditure gets a budget. This might include setting up $ 100 for eating every month. Each category of expenditure is then assigned an envelope that is filled with the assigned amount of money at the beginning of the month. The envelopes help promote a strict budget and ensure that no category of expenditure does not take more money than it was assigned.
The envelope budget is the simplest when each envelope is clearly marked with the category of expenditure and the corresponding amount of money. As a result, it is easy to go through envelopes quickly, find the expenditure category and exactly identify how much money is available. When using the envelope budget, it may be wise to store envelopes on a safe bowlYou, because cash lying in envelopes can facilitate prey for future intruders.
The traditional envelope budget depends on the insertion of hard cash into the envelopes. With many people receiving payouts per month, it may initially be a difficult transition. Over time, however, it can become the usual and easily earn a paycheck that can be filled with budget envelopes. Involving the habit of relying only on the cash envelope can also help to shut down the outage of the use of credit or debit card too liberal. Only the exact amount of money allocated in budget envelopes can be spent using this method.
With sophisticated financial software, the envelope budget is now possible without using cash. By connecting a bank account with one of the many available financial software tools, Spender can monitor how much money flows in and out of the bank account and what the money has been spent. UseElé can either create their own categories of expenditure or rely on the categories of boilers provided by the financial service.
Financial software packages can be purchased, but you can also rely on one of many free online services. Do not be fooled that you think that because some services are free, that they are less reliable; The financial enthusiasts and software developers have made free online services very competitive and reliable. However, there are compromises. Some feel that the budgeting of an electronic envelope is a safer-there is no problem and the risk of free floating cash-but it requires users to share your account information. Financial services are very able and carefully protect your financial information, but when sharing your account information, risks are always associated.