The Envelope system:
This is one of my favorite systems to use when involving money. If you aren’t good at saving money or if you are one of those people that blows their pay check within a few days of getting paid and then struggling to make it to your next pay check, this is definitely something for you.
I’ve always been really good at saving money but I wanted to see how well this worked. Even if you’re good at saving, it keeps it organized. So even after I proved my theory, I am still to this day using it.
What is it?
Now you’re wondering, what the heck is an envelope system… it sounds lame. It is where you figure out how much money you need for your bills, each in a separate envelope, and divide it to put money in each envelope weekly. This results in the amount of money you need for your bills without the hassle of figuring out if you have enough.
I have many envelopes now. It started with just bills but now I use it for everything. Here is a list of some envelopes that I have: Christmas, rent, utilities, clothes (because we all try to overspend when shopping; this limits our spending), car payment, car insurance, gas, church offering, spending money, etc.
There’s more you could do, it really just depends on you and how you want to use the system.
If you are still confused, let me give you an example. Let’s say your car insurance is $200.00 and you get paid every week. You would divide $200.00 by four. So each week you would be putting $50.00 in your envelope for your car insurance.
But then there’s stuff like utilities that you aren’t really sure how much they are going to be each month. What I do is take my average amount that all my bills come out to be, add them together and add another $20.00 just to be safe. Then after you pay all your utilities, you can put the money leftover in your bank account along with the other money that didn’t go in envelopes.
If you try it, I would love to hear what you think about it! Email me or comment! Love y’all 🙂