The 3 envelope budgeting system is a simple way to spend less money on those troublesome categories where you tend to overspend. By using this simple money trick, you can save more cash and have enough money to pay for the things you really want. If budgeting isn’t your thing, use this simple 3 envelope budgeting system to control your spending and save more.
Other than having a job and earning money, the most critical thing you can do to improve your finances is to have (and stick to) a written budget. A budget is so fundamentally important to life that it should be taught in school. Unfortunately, how to manage money isn’t taught in school enough. So, I want to help people get started on their first budget by showing how to use the 3 envelope budgeting system. Your first budget doesn’t have to be complicated. All it takes is 3 envelopes, a pen, cash, and a little thought.
Have you ever had an unexpected bill set you back and make you go deeper into debt? Those new tires set you back $400. That trip to the doc cost $800! Or that time your electric bill doubled in one month! It happens to all of us. So, what’s the best way to deal with an unexpected expense? A buffer month of money has prevented me from going into debt, and it could help you too.