Envelope Money Budgeting Method
askpaul explains about using the Envelope Money Saving Method:
Hi everybody, today I’m going to have a chat with you through one of my biggest tips, which is the envelope money system, when it comes to saving and keeping track of your money. If you are one of those people who can’t get through the month without using your debit card on a daily basis, and you find it hard to track your money, you really need to consider using the envelope budgeting system.
So, what I want you to do is, at the beginning of the week or beginning of the month, take out whatever discretionary money that you want to spend that month. Let’s say you want to spend €200 on discretionary spend for coffees, lunches, a night out or whatever you want to do. That’s €50 per week and €200 over the course of the month. What you’re going to need to do is, at the beginning of every month, put €50 notes into four envelopes.
What you have to do then is put them in your drawer at the beginning of each week, take one envelope out and spend the contents. Very, very simple to do. What this will do is that during the first week, you might run out of your €50, probably by Wednesday, the way most people do. But, come week five or week six, you’re going to have maybe €20 left in the first envelope and that will all be thrown into the next week, etc.
Ultimately, it really helps you retrain your mind when it comes to money and how much you spend during the week or during the month. This really works well no matter what your income is, no matter what your salary or your background.
So please give it a try. If you’re not comfortable taking out four weeks’ worth of money, just go to the ATM machine on a Monday and take out the €50 for that week and put it in your purse or your wallet. Best of luck and let me know how you get on.
Why work with us?
Work with Ireland’s leading financial advisors to make your money work smarter, harder and go further.
Join over 90,000 people who follow askpaul
Get FREE access to content to help you make the right decision about your finances. Follow askpaul on:
Ready to get started?
Have a Financial Question?
Connect on social: