![]() If this is your first budget, then start with how much you spent last month as your budget amount. Once you’ve determined your problem areas, figure out what the budget should be. Instead, focus on using the cash budgeting system for all your discretionary budget categories, or even the top 2 variable expenses that you have been struggling with the most. You don’t need to do cash for your fixed expenses, like your mortgage and your car insurance. Grocery/food costs and entertainment/fun tend to be the most common trouble spots and that makes sense because these are all variable/discretionary expenses. We all have areas of spending that we have to work hard to keep under control. Whether you’ve kept a budget before or not, you should be able to determine your problem areas. Use a cash envelope system for trouble areas. ![]() Finally, disable overdraft on your debit card.Fourth, use your debit card for all your purchases.Third, add all your discretionary expense budgets together and move that amount over to your separate checking account at the beginning of the month.Second, create a separate checking account that will be used for only your discretionary expenses.First, create a budget on paper or using your favorite budgeting software.How to Implement a Digital Version of the Cash Envelope System.Complaint #3: The cash envelope system is more difficult for couples. ![]() Complaint #2: I don’t have enough cash in the bank to fully fund my monthly cash envelopes.Complaint #1 – Carrying a roll of cash is a safety hazard.Divide your cash into individual envelopes.Determine the budget for each category.Use a cash envelope system for trouble areas. ![]()
0 Comments
Leave a Reply. |