You might notice the financial tips and posts lately. That’s because It’s a personal goal of mine this year to kick my financial situation up a notch. I spend way too much on food and….clothes. So I want to stick to a budget consistently and see how much of a difference it makes. Hopefully this article helps you, like it helped me 🙂
Get on a Simple System by She Makes Cents
Full article can be read on: http://shemakescents.com/2012/03/11/the-envelope-system-saves/
The key component to Dave Ramsey’s, “Total Money Makeover” is the envelope system. What is the envelope system, you ask? Well, according to Ramsey, its “way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today’s card swiping culture”. I will say that it works and the comments to post prove it. Check out Ramsey’s simple basics for starting a cash envelope system.
- Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you’re going to successfully implement the envelope system. While I know plenty of people who budget a certain percentage of each check, I budget specific figures.
- Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing, and entertainment. I usually work off three main categories: groceries, restaurants/entertainment, personal maintenance (hair, nails, or anything that will help me feel “pretty”). I chose these categories for myself because these are the areas I could be tempted to overspend. I pay my bills off the top and then I budget each paycheck into these categories, which were listed in order of importance.
Please feel free to look at the rest of the article at: http://shemakescents.com/2012/03/11/the-envelope-system-saves/