Thursday, September 20, 2012

The Envelope Budgeting: Help You to Make a Strict Budgeting

By using envelope budget, you may decrease some unnecessary spending.

When we receive paycheck or honor from our boss directly, we receive the money inside the envelope. Some people who give money in envelope. People often save the money inside the envelope to protect the air that could damage the money. The envelope also keep the money from bad people. When you let the money up the table, the other person may grab it.

The envelope budgeting is a simple budgeting and cheap. We do not have to buy a software to make the budget. Perhaps this budgeting has been found hundred years ago.

The envelope can be used for budgeting. It helps us to strictly in money spending. We allocate the money into various kind of spending. We have to determine what kind or the category of spending in a month. We are hoped not to spending more money than the money on the envelope.

The strength of the envelope is that it can reduce your spending. Perhaps, you will use cash rather than credit card. You do not need to pay the credit car interest or credit card fee.

The envelope can remind us to strict the money that we spend. When we see the empty envelope, we should not use other envelope to replace the empty envelope moreover our salary.
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Use your previous record to list your spending. Name each envelope with spending item. Then, put the money as you have allocate before. The amount of money base on your previous month and your estimation. Example: your budget for cinema is $ 50 per month. Inser the $50 into the envelope. You can make other envelope to keep some money.

Here are the example of the spending:

Mortgages $800

Electric bill $100

Water bill $50

Telephone bill $75

Food $375

Gasoline $200

The weakness of the envelope system is that you need to provide some envelope. The envelope is also easy to damage. You should need envelope that is not expensive. A piece of envelope just 10 penny.

You should saves the envelope to the wardrobe or to the safe place. Keep the envelope far from our kids or other people.

Due to advance technology when people often do not use cash, This budgeting is an old fashion budgeting. However, some software company developed enveloped budgeting software. This software may help you to build an envelope budget but it is reduce the essential of envelope budget. The software do not use cash but credit card or others.

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