Benefits of Envelope Budget System

Financial success is very important for survival and financial growth and for this purpose, it is necessary to track the monthly or yearly spending and earnings. This is only possible if you create a sensible budget and stick to it successfully.

There are various budgeting methods but the most common is envelope budget system. You can create this budget at home with your gadgets or online by using different envelope budget system apps.

What is an Envelope Budget System:

The Envelope Budget system is a system in which you liquidate the monthly income and divide it physically into each expense envelope or you divide it into different categories of expenses digitally.

Most people prefer a digital envelope system where a digital envelope app is directly linked to your bank accounts. When money is added to the account, it is automatically distributed to each category as per set amount for each category.

Whether you make money from home or do any physical job, the envelop budget system is equally effective, especially for variable monthly expenses such as dining out, groceries, entertainment, clothes, gas, personal use items, subscription fees, and other such expenses.

How Envelope Budget System Works:

There are a few steps to follow to ensure the success of the envelope budget system.

1. First of all, you need to calculate your total monthly income from any source such as home office earnings, online work, or job.
2. Now accumulate total monthly expenses and divide them into different categories such as groceries or bills.
3. Write the name of each category on a physical or online envelope.
4. Set a money limit for each category.
5. When the whole division takes place, you can use the money for each category.
6. When the allotted money ends from any envelope you should end the expense for that category.
7. The money that is left in any envelope can be saved for next month or used for any other purpose.

Best Envelope Budget Apps:

Envelope budget apps are very popular in this digital era and they have different methods, scopes, and features. All envelope budget system app are connected with financial or bank accounts and trails the expenses in each category but the best envelope budget apps go beyond this basic process.

Best envelope budget apps are free but few have minimal monthly or annual fees. Some of the best envelope budget system apps are as follows:

1.     Mint Envelope Budget App:

If you are interested in tracking your income and spending every month for free then the Mint app is best for you. It is a very famous envelope budget app and can be easily downloaded from Android stores and Apple stores.

After synchronizing with your bank accounts, it automatically trails incomes and expenses. It gives you spending notifications, monthly bill alerts, and free monitoring of your credits and you can see the complete budget details at a glance.

2.     PocketGuard Envelope Budget App:

When you require a simple budget app for managing your income and expenses then the PocketGuard envelope budget app is best for you. It is similar to the Mint app but it has a different approach to budget management.

It can help you lower your monthly expenses by letting you know about different discounts for services and subscriptions by connecting to your service providers.

3.     EveryDollar Envelope Budget App:

If you follow a zero-based approach for your budget then the EveryDollar budget app is best for you. This app aims to leave $0 in your budget by removing those spending that are wasteful.

This is a free app and you can also get a free membership for EveryDollar Plus that helps you to build a budget for charity, pay debt, and category for emergency needs.

4.     YNAB Envelope Budget App:

YNAB budget app is also free and works on similar principles as of EveryDollar app but it helps you to highlight a point where you can extend one month’s budget ahead based on last month’s budget.

It is a very comprehensive app that works on detailed strategies to manage budget with the most advanced system. Other envelop budget system apps are Mvelopes, Goodbudget, Empower, and Real Budget.

Envelope Budget Template:

Online and physical envelope budget systems use different types of templates for each category. Cash envelope budget templates are available for free online in printable format. These are available as Word templates, excel sheets, registers, and some apps and software.

To manage money in your way, you can select your favorite envelope budget template and use it for an online app or print it for cash. Whatever the system is, your favorite template encourages you to stick to the budget and get the maximum out of it.

Envelope budget template will help you to;

1. Keep an eye on your money on the expenses and earnings.
2. Make sensible choices about each category to get a budget for entertainment.
3. Save money to buy your dreams.
4. Start collecting extra funds for emergency needs.

You can maintain each category of your budget in an envelope budget template to strictly follow the envelope budget system and get benefits from it.

FAQs: