Hola bellas! Have you ever thought of how you can get control of your spending and be able to save more money by using the envelope budget system? If so, wonderful! You’re on your way to success! If not, let me tell you about the envelope budget system.
The envelope system is simply putting the cash you earn in envelopes towards different spending categories. For example, if you earn $2,000 per month, you would put x amount of that in an envelope labeled rent (assuming you have to pay rent), x amount in an envelope labeled savings, x amount in an envelope labeled cell phone payment (assuming you have a cell phone, and who doesn’t these days?), and so forth. You continue this process until you put all the money you earned in an envelope with a specific category. You can use the Hispana Bella budget template to get an idea of what some expense categories you can use.
When you buy something, use money from the corresponding envelope category. For example, if you’re dining out, and you set aside $60 in an envelope marked “Dining out”, you’ll use the money from the envelope to pay the bill. The remaining money in the envelope will be used for the next time you dine out.
But what’s the purpose? The reason the envelope budget system is so useful is because you’re able to tell your money where to go and have more control of where you’re spending it. You’re also less likely to overspend because you can’t spend more than what you put in the envelope. Also by using cash, you have more of an emotional connection to the money when you’re spending because it’s tangible and you feel it leaving you when you buy something, versus paying with a credit card.
Lastly, you might be able to save more money by setting money aside in an envelope marked “savings”. What are you waiting for, take charge of your spending and saving today! Let me show you how.
Envelope Budget System in 5 Easy Steps