The Simple Envelope Budget Puts An End To Accidental Overspending.

The envelope budget is time tested. It was once used by many American families to help them avoid debt and overspending.

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We all know how easy it is to overspend.

Overspending generally occurs when...

We don't know exactly how much we have already spent and/or... we don't know how much we have left to be able to spend.

The result is... we overspend... without even being aware that we are doing so.

Controlling overspending may be the most important single thing that you can do to put your financial house back in order.

The envelope budget method of personal budgeting goes back to the time of "The Great Depression".

It was born out of the need for a "rock solid" way for people to control and monitor their money and their spending.

At that time... and for many years after... banks were not trusted.

So people would set aside money for a specific purpose (category)... in an envelope marked for that purpose.

With the handy envelope budget system of personal budgeting...

People always knew exactly how much money they had spent on different things and... how much money they had left over to tide them through the month or put into savings.

In other words... when it came to their money... they knew where they were and they had control.

You can do the same.


The Envelope Budget is a method of budgeting where on a regular basis (monthly, biweekly, etc.) a certain amount of money is set aside for a specific purpose or category... in an envelope... marked for that purpose.

The strength of this budget method is that...

It "clearly and physically" separates your money into categories (purposes) prior to your spending the very first dollar.

It is this... "in advance", definitive, physical separation... that makes the envelope budget method the most effective family budget system there is.

Once set up... the status (balance) of each category can be easily and tangibly monitored in real time.

The result is... you know exactly where you are with any particular category... at all times.

The amount of money left to spend in a given category can be calculated at any time by simply counting the money in the envelope.

In addition... each envelope can be marked with the amount due each month (if a bill is known ahead of time) and the due date for the bill.

Anytime you make a purchase you simply look in the envelope for the type of purchase being considered to see if there are sufficient funds to make that purchase.

If the money is there... all is well.

If it is not there...

You do not make the purchase... at least not until the next allocation is made.

The opposite is true as well... if you do not spend everything in the envelope this month... then the next allocation adds to what is already there... resulting in more money for the next month.

At any time and for any category... you can easily determine how much you have already spent and how much you have left available to spend for the category.

You cannot overspend without being aware of what you are doing.

In other words... you regain control.

Start by first reading the personal budgeting page of this website.

Next... print out the free budget plan form to help you create Next Month's Spending Plan. Or you can use this free budgeting software to start with.

Finally, visit and take advantage of the many money saving suggestions found on this great resource site... Frugal Footsteps

The simple envelope budget is a solid, powerful and "time tested" method of family budgeting and spending control.

Don't spend money without it!

"Because It Matters"... Jim

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