Because it’s the start of a new month, there is an important question we need to ask you: where is your money going?
Happy November 1, everyone! We only have 2 months left before 2020, which is another brand new decade coming up. Moreover, celebrations for the holidays are coming. Of course, we have Christmas and the New Year.
But before you buy things for all of those important events, did you already plan on how you are going to manage your money? Because let’s face it, we can buy and celebrate all we want. However we also need the assurance that after everything, our finances are still enough. After all, going into debt is a horror story.
So how should you manage your money?
We all know how budgeting works: you set aside a certain amount of money for certain expenses. But frankly, most of us are still confused on what’s the most efficient and effective way of budgeting.
Well everyone, meet one of the most helpful YouTubers: The Budget Mom. Because of her, we learned more about the cash envelope system and how to use it to keep track of our finances. You can read more on how she does it in her blog.
Meanwhile, check out one of her videos below.
So how do you manage your money?
- Track your income or the extra allowances that you receive.
- Write down your regular expenses (monthly or bi-monthly).
- Write down the things you want to save for. These will be called your sinking funds. These could include your emergency fund, money that you would use to buy a house, and even travel funds.
- Make your cash envelopes and fill them with the specific money that you assigned.
- Track your expenses as the days go on and look at where they are actually going.
And there you go! We are currently doing this and truthfully, we weren’t successful from the start. But as time went on, we were actually amazed at how effective it is. Give it a try for yourself and let us know how it goes for you!
What do you think of this system? Do you think it will help you save money for the things you need? Let us know your thoughts by sharing them through the comments below! Or just simply hit us up on our Facebook or Twitter account, @udouph.