Updated: April 20, 2020
One of the best ways to manage your budget is to use The Envelope System.
This budgeting method is so effective that it has become one of the recommended tools for personal finance.
I’ve already written about this topic before and if you’d like to know my personal 8 step action plan to creating a budget through this method, then you can go ahead and read my post on The Envelope Budget System.
But for today, I’d like to feature short video that will give you a visual tutorial on how The Envelope System works. Let’s watch:
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[…] Envelope Budget System Tutorial Video […]
Hi Fitz,
This is a very good post. Ive been attempting to do a more “organized” and “hi-tech” approach on implementing the envelop system (usually with the help of spreadsheet, finance software, etc) but I haven’t seen it this simple yet very effective. I will give it a try.
I guess the saying is true… the simpler.. the better…
[…] Envelope Budget System Tutorial Video […]
[…] Envelope Budget System Tutorial Video […]
Thanks a lot for this financial guidance! Very practical and I think i really need a lot of discipline and control to myself and of course a joint cooperation with my wife. I will surely let you know how far i will be going.
Nice presentation. Is it possible to have an alternative video to envelope system that uses spreadsheets? I travel a lot and it may seem cumbersome me carrying all those envelopes
Nice way of saving & tracking expenses. I’m gonna give it a shot this coming pay out.
I use envelopes and I find it’s the best saving system there is. You really have to be tired of not having money for this to work. Discipline and persistance is the key. Think of times when you were laid off,cutbacks or downsizing were made at your firm. Whatever affected your income that you were not prepared for financially. Keep the same frame of mind you had then with you. For instance; I will never let this happen to me again or if something like this happens again I will be prepared. Set a goal to save a certain amount every six months or yearly. You may not save exactly what your goal is but you can come close. Learn to live within your means and do not try to keep up with the next guy who may appear to have everything but yet has nothing.This is what I do; When I get my check If I don’t have to cash it I don’t. Put it away until the next pay period. When your next check come around, usually the mortgage or rent is due and other bills. Cash one or both, take out what you need for the week for gas, food etc… I bag my lunch and every now and then I will eat out for lunch, but I eat off the dollar menu and I keep coupons if availsble. Once my bills are paid I vow not to touch the envelope unless it is necessary. If you deduct from the envelope, notate it. There are times you will have bigger expenses, like: car maintenance,medical etc… I have self gluing envelopes so I seal them with the intent not to open then until I desperately need to. Now, don’t cheat yourself. I do plan for small vaction get-aways and the like. but I save with this vaction apart of the goal.When you are 50 years old you start to think. If the Ira’s or Roth Ira’s will not work for you something has to. If you can’t trust someone to save your money for you, you have to trust yourself. Stay out of the malls, take care of the clothing and shoes you have. Don’t want something you don’t need,maximize what you have. I used to use the debit card attached to my checking and found that I was one the statistics being charged all the eroneous fees for overdrafts etc…I got rid of the checking and kept a saving. I send money order or use a pre-paid credit card for expenses when needed. It does cost to load the card but some companies do not have any transaction fees for paying bills at all, you have to read terms and conditions very carefully. Another smart thing to do is keep your car filled with gas. Money saved slow stays while money saved fast strays. Thank you for listening!
That system does look pretty easy. I am still trying to figure out how to put my mortage money aside like that using an envelop system. Do you use that system for your mortage or rent or do you have it set through direct debit.
[…] that time, a few years ago, I’ve already been using the Envelope System to track and control my […]
[…] drinks, sodas and fast food (for a meal per day) and pool them together into a fun envelope (yes, I also use an envelope system). I kept that money for 3 months. I spent some of that money for cereals/oats and for gym […]