Using “Envelopes” To Fix Your Finances

How a modernized envelope system can help your finances

The envelope system has been around for a long time. The idea behind it is really simple: When you get paid, you take cash and put it in envelopes that are labeled with things like “groceries,” “eating out,” and “hobbies .” Once the cash is gone, your budget for the month is expended and you wait until the next month to spend any more in that category. It’s a wonderfully simple and practical system and is advocated by the likes of Dave Ramsey.

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Unfortunately, for many of us it is not practical. I’ve been essentially cashless since my senior year of high school when I got my first debit card. I’ve only continued this into adulthood where I’ve started using a credit card with a rewards system to get kickbacks on everyday spending. But even with my cashless spending, I’ve discovered a way to move the envelope system into the modern age and keep some of the biggest benefits of it. Here is what you need to do to set this up.

What have you found to be an effective budgeting technique? Share your tips and stories in the comments!

Experienced Chaplain. Photography Enthusiast. Lover of learning. Reader of books. Sci-Fi fan.

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