An easy way to start your budget plan is to begin using envelopes. Dave Ramsey, well-known financial adviser, introduced the idea of the envelope system.These categories often include things like:
- clothing (shopping)
- entertainment (movies, etc)
- food (lunch date, etc)
When using the envelope system you are able to limit yourself and reward yourself at the same time. Budgeting can be difficult to start possibly making you feel like you're limiting yourself from having enjoyable opportunities.
However, it is merely there to help you physically see your money and how much you are spending. It's harder to be attached to your money when you can't see it be swiped out of your account with a plastic device.
The envelope system enables you to see not only how much you're spending, but where you are spending it.
This system also helps you to feel less guilty about spending because that money was specifically set aside for that certain category.
My whole family is an avid Dave Ramsey fan! His tips can be so helpful, even when you think what he's saying it's nuts. it's nice to see someone else my age also using this advice. Can't wait to see what else you post, whether it be Dave Ramsey or not.
ReplyDeleteI am so glad to hear you follow his tips as well. I have found them to be extremely helpful in budgeting and I plan to share more of his tips. Thanks for reading!
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