3 Simple Steps of Envelope Budgeting System

Step 1: Determine Your Discretionary income

evaluate how much you have available after paying your bills and put aside for savings and investments.

Step 2: Decide on a budget

this means dividing your money among the different budget categories. Some example of common categories include:  Rent, household items, groceries, savings, clothing, gas and gifts.

Step 3: Assign each category to a single envelope

Write the category name on the back or front for each envelope. Then you will be putting the specific amount cash.

The advantages of Envelop System; It will help discipline you, your budgets become more tangible, less wasteful spending and you won’t miss a payment.

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