How to use the envelope system
Ever felt like your money just slips through your fingers? 🤔 Imagine having TOTAL control. That's what a cash budgeting system does. It puts YOU in the driver's seat.
What is a Cash Budgeting System?
It's SIMPLE. Think of it as using cash for your daily expenses instead of plastic cards or digital apps. You set aside a specific amount of money for different categories like groceries, entertainment, and bills. AND that's all you get to spend. Period.
How It Works
- Identify Your Income: Know what you earn. Make a budget plan with your earnings minus bills, expenses, and sinking funds. Your ended number should equal zero. Every dollar has a place.
- Set Your Envelopes: Organize your expenses into specific envelopes like Groceries, Gas, and Entertainment.
- Allocate Your Cash: Put cash in envelopes.
- Spend Wisely: Use ONLY what's in the envelope.
- Adjust as Needed: Leftover cash? Great! Save it or roll it over.
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