MONROE, La (KNOE) - What is the envelope system?
Courtesy: MGN Online
The envelope system is a very practical tool that our grandparents used and a tool that all of us can use to get back on track financially. Each week you fill envelopes with cash which will help you stay in your budget.
What is the first envelope that you use to put cash in?
One is the Grocery envelope. Each week you put so much money in the envelope to spend on groceries. An example would be- we are a family of three and we budget for $150 per week for groceries. This money covers food, paper products, hair products, dog food and personal items such as deodorant and toothpaste. The amount you spend depends on how many mouths you are feeding.
Would do the next two envelopes cover?
The Weekend envelope. You need to figure out how much you plan to spend each weekend. This covers money needed for Friday night to Sunday night.
The Me Money envelope. This is money that each spouse needs to cover expenses for Monday-Friday. This covers money needed for lunches, snacks, tobacco, or coffee.
What is the last and final envelope?
Fuel Envelope. This envelope can be used two ways. You can pay for fuel with cash out of the envelope or you can use a debt card and put the receipt inside the fuel envelope and keep a running total on the back of the envelope so you know how much money you have spent on fuel.
When is your next Debt-Free & Wealthy Live event?
Monday, March 18th at Louise Williams Library in Monroe at 5:30 p.m. Cost is free but