Monday 3 March 2014

Use the envelope system.

           This is a simple system to keep track of how much money you have for spending. Let’s say you set aside three amounts in your budget each payday — one for fuel, one for groceries, one for eating out. Withdraw those amounts on payday, and put them in three separate envelopes. That way, you can easily track how much you have left for each of these expenses, and when you run out of money, you know it immediately. You don’t overspend in these categories. If you regularly run out too fast, you may need to rethink your budget.

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