Most people find budgeting to
be a fearful, worrisome exercise. There are simply too many things you need and
too little cash. Here’s a simple method that will teach you to keep track of
your expenses by focusing only on your regular, recurring expenses by setting
money aside in envelopes.
Let’s say
you set aside four amounts in your budget each payday —
- one for filling up petrol,
- one for groceries,
- one for kids school fees & expenses
- one for weekends, entertainment and eating out
Withdraw
those amounts on payday, and put them in three separate envelopes. That way,
you can easily track how much you have left for each of these expenses, and
when you run out of money, you know it immediately.
You don’t
overspend in these categories. If you regularly run out too fast though, you
may need to rethink your budget.
Bonus: You
can now easily decide on your long term savings plan with whatever you’re left
with.
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