For our envelope budgeting system, we will need, obviously:
1. Envelopes
2. Sticker paper
And of course, cash :)
First thing we need to do is to categorize. Think of things you usually spend your money on, on a monthly basis then think of things you want to save up for. I usually manage both our money, hubby's sweldo and mine. For the expenses, I made categories for food, groceries, utilities, date nights, personal expenses/allowance for me and the husband, pets, emergency fund, and credit cards. As for the things I want to save up for, baby fund, insurance, and travel fund are my categories. After categorizing, you want to download the template here then print it on your sticker paper.
Next, all you need to do is cut the labels you made and stick it to your envelopes. I can customize the colors of the template for you or even the labels/categories if you want. Just add and message me on Facebook and I would be truly happy to help :)
Now, it's time to allocate. First, know how much your average monthly allowance is. Now, you will put money on your "save" categories first. It does not have to be a big amount, just make sure that you put something in it every month. Then, determine how much your average expenses are for each category then place the said amount to their respective envelopes.
Just do this monthly and you will be amazed how easy it is to manage your money. I also keep receipts on each envelope to track my expenses better.
Do you practice this system too? How do you find it? Share your tips on the comments section below :)Hope you have a nice day everyone! Happy budgeting!
