The envelope budgeting system is a simple, but effective way to make sure you never go over your budget. You can get out of debt and gain an appreciation for your money by using this amazing budgeting strategy. At the beginning of each month, you allot a certain amount of money to the categories you have planned. With an envelope filled with cash for each important category on your budget, you use real bills instead of a card for every transaction.
This system is best for people who want to have more control over spending behaviors. For example, if your “Clothing” envelope is empty, you cannot spend anything on clothes until your next set of envelopes. The goal of this system is get people in the habit of never spending more than they have, to break the alliance that many people have on credit cards and payday loans. This system also encourages even spending, stretching your income to last over a long length of time.
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