Managing Your Budget the Envelope Way

By: Melissa Khalinsky

One easy way to manage your money is to set a budget, then organise your cash physically in to envelopes.

On payday, withdraw your money. Have a number of envelopes labelled and ready for you to sort your money in to them.

Envelopes could include:

• Rent
• Electricity
• Gas
• Water
• School fees
• Food Shopping
• Clothes Shopping
• and more

If it is not the week to pay those bills, for example, the rent, then you will have the money available when it is due.

Having the cash in envelopes instead of your account will reduce the temptation to EFTPOS something without keeping track of the cost. It will also save you on bank fees as the number of transactions will be reduced.