THE ENVELOPE METHOD

Here is another way to budget your money called the envelope method. Decide how much money you are going to spend in each category. Put your 10% or your allotted savings amount and put it directly into savings. Now figure out how much money you will need in each category. The money for gas, entertainment, groceries, personal, clothing, etc gets taken out of the bank and put into the correct envelope. For instance if you decide to use $80 for groceries you put the money in an envelope marked groceries. Grocery day comes and you bring your shopping list and coupons to the store, but leave your checkbook and credit cards. You can't overspend because the only money you have is in the envelope. Whatever money is left over can be put into another category if you'd like.

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