What is an Envelope Budget?
Sometimes when friends ask me about Inzolo I will say it is a virtual envelope budget system. Often, the response is, what is and envelope budget?
This concept has been around for probably as long as cash and envelopes have been. Basically, with and envelope budget, when you get a paycheck, you cash it, and divide the money into different labeled envelopes representing spending categories. Then as a bill comes due, or you go to get groceries, you spend money from its assigned envelope. When the money runs out, you’re done spending, or you choose to sacrifice from another envelope. It’s really that simple.
Below is a video from the No Credit Needed blog showing the envelope budget using monopoly money.
Themocracy
Great tutorial. It was informative and easy to follow. I have used the envelope system but I dont like to carry that much money with me. (I usually carry the gas and grocery)
I recently had my car broken into while I was at the gym. Even though I have tinted windows they must have known I had my purse in the back under the floor mat. luckily I didnt have much money left in my envelopes. It was easy to cancel the atm and I dont have credit cards so I didnt have to worry about contacting several companies. If it had been at the beginning of the month they would have got lots more cash.
I spend less with my envelopes than with an atm so I will most likely keep the system. I just need to be more careful about how many envelopes I carry.