By Envelopes
Another way to monitory your budget is to set up a cash box with a number of envelopes each marked according to the purpose for which the money will be spent. At the beginning of the planning period, you put the money you’ve budgeted into the appropriate envelopes; when payments are due, you withdraw the amounts you need. You can also keep receipts in the same envelopes.
The advantages to this system are its simplicity and control. There’s little chance of using the money meant from one purpose to another. And you may be less likely to overspend, because you can see when you’re out of funds.
The advantages to this system are its simplicity and control. There’s little chance of using the money meant from one purpose to another. And you may be less likely to overspend, because you can see when you’re out of funds.
Add Comment
RSS Feed
