Envelope Budgeting Method: The Easiest Way To Get Your Finances on Track
- What is the envelope budgeting method?
- Rules for the envelope budgeting method
- Envelope budgeting example
- Who is this budgeting strategy best for?
- Who is this budgeting strategy not for?
- How to get started with the envelope budgeting method
- Pros and cons of the envelope budgeting method
- The bottom line
What is the envelope budgeting method?
Rules for the envelope budgeting method
Log your monthly income and expenses
Set your categories of spending (and amounts) upfront
Create categories that will help you reach personal finance goals
Stick to your individual envelope budgets
Envelope budgeting example
|Pay Period #1||Pay Period #2|
|Total Income: $1,500||Total Income: $1,500|
|Rent $700||Car insurance $100|
|Utilities $50||Retirement $300|
|Phone bill $80||CClothes $100|
|Groceries $100||Groceries $100|
|Gas $70||Gas $70|
|Dog food $60||Dog food $60|
|Savings $100||Savings $200|
|Emergency fund $50||Emergency fund $100|
|Restaurants $100||Restaurants $200|
|Entertainment $100||Entertainment $100|
|Miscellaneous $90||Miscellaneous $70|
Who is this budgeting strategy best for?
Someone who wants to change their spending habits
Anyone interested in saving more money
Anyone with a steady income
Who is this budgeting strategy not for?
Someone who doesn’t have the time to create envelopes
Someone whose spending habits change frequently
Anyone without a steady income
How to get started with the envelope budgeting method
Pros and cons of the envelope budgeting method
Helps you curb spending habits
Easy to save up towards your goals
Simple to get started
Can be harder to stick to without physical envelopes
Time-consuming to set up
Difficult for those with variable incomes
The bottom line
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