Envelope system
October 1, 2018
I’m Miriam Neff-with STARTING OVER FINANCIALLY,-and I’m Valerie Neff Hogan, and we’re here to talk about money
M One necessity for money management is controlling spending. It’s challenging given that credit cards are handy and will let you spend what you don’t have.
V Try the Envelope system. It requires planning but pays off in that you know not just where your money is going, but whether you can sustain that habit.
Cash goes into an Envelope: grocery, clothing, eating out including drive through coffee, gifts. Your Envelopes reflect your life.
Mortgage or rent and utilities are bills you pay first. ‘Left over’ money goes into those discretionary categories.
M We’re not saying its easy. But it works.