Perhaps you remember your mom using the envelope system to budget for monthly bills? This is an “oldie but goodie” idea to keep track of your budgeted income.
The envelope budgeting system is a very simple budgeting trick. The key to the system is sticking to it.
There are even online versions of this budgeting strategy....Mvelopes Personal is a very popular online envelope budgeting program. Check out their free trial!
Use this idea for expenses that have some flexibility in them. Your mortgage and car payments and the like are fixed. You do not have any options when paying these expenses. However a certain amount of grocery bills, gas bills, and clothing expenses fall within your discretionary funds.
When that money is spent, you are done with that expense for the month. That's it, no cheating. No adding money to the envelope! Only use the money in any labeled envelope for what it was budgeted for! No stealing from your other envelopes! (Robbing Peter to pay Paul!)
Try to “beat” your personal budget projection and save the extra money for something special later on!
This system really forces you to see where your money is going!