Budgeting with the Modern Envelope System
I like the envelope system of budgeting, but I think it’s time to bring it into the modern age with a little twist. I call it the Modern Envelope Budgeting System.
There are so many budgeting systems in place; why do you need yet another one? My budgeting system is not really a new concept. It’s been around for a long time. Many personal finance experts have espoused Zero-based budgeting and envelope budgeting, and for a good reason: it works.
However, as we move to an increasingly digital and cashless society, there are many drawbacks to those systems. I found that they didn’t totally work for me. Almost but not quite. And it’s that “not quite” caveat that makes the budgeting fail.
The best way to budget your money is to decide before receiving it where each dollar will go. This is a combination of various budgeting system- and it works!
In my opinion, the best way to keep track of your money is to divide it into separate categories as soon as you get it.
Some will tell you to take out the money and put it in a labeled envelope, hence the term “Envelope system.” Still, I suggest you open several sub-accounts and just deposit the money in there in these modern days on online banking and virtual envelopes and buckets.
Interested in learning more about how to set up your digital and modern envelope budgeting system?
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