Envelope Budgeting
How You Can Budget Using the "Envelope" System With Modern Software!

Envelope budgeting has been around for years. My family used it for awhile when my hubby and I first got married, and my sister-in-law’s family still uses it to some extent. What is it? Traditionally, it is having envelopes labeled for “groceries”, “clothing”, “school lunches”, etc. 

Using the envelope system, each week you would put a certain amount of money in the grocery envelope. If you had $100 to spend that week, you would only spend whatever was in the envelope, and that was it. If your family could stick to it, it was and is a very effective method of budgeting. 

With online banking, and bill-pay that most of us use now (and if you don’t use it, you should!), it was time for my family to move on to something more modern. There are a few software programs that you can use for free. Some banks have the service online. Take a look at the Bank of Montreal (BMO) And try out Mint.com too. 

Envelope Budgeting Is Easy

1. It is extremely user friendly with a set-up guide to help even the most technology-handicapped user get started! The user set-up guide helps you connect Mvelopes to all your accounts including bank accounts and credit card accounts. And it is very secure! No worries there. 

2. After you have it connected, the user set-up assists you in setting up envelopes online (or Mvelopes) for each of your expenses: your electric, heating, credit card payments, mortgage—literally ALL your expenses. 

3.You are able to manage your expenses online, and drag the appropriate amount of money into your Mvelopes (envelopes). This makes online bill-pay easy and painless for you. 

4. At the end of the month you can see your balances and where you “over-spent.” This has helped many, many users to stop living beyond their means. Most people who try Mvelopes no longer spend more than they make!

This way you can see how the envelope system works, and give it a try! I would not recommend anything that has not been proven to work by many, many moms and families. 

In fact, PC WORLD magazine named it one of the 100 Best Products of the Year for 2006. It has also received other awards. There is free online customer support if you have any problems or questions. 

If it isn’t for you, you can always try the Microsoft Budget template in our free tools section, or go to the “old-fashioned” envelope system. I realize that what works for one family in their quest to live debt free may not work for another. 

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