Envelope Budget - Take Control of Your Finances

To envelope budget means take all of your finances and spread them out into categorized envelopes. This is an excellent way to take control of your household finances.

It means that you will live well within your means, that you won't be spending frivolously outside your budget, because you will put the funds into their designated areas.

Start out making a list - at the very top of your list put your monthly income (take home pay). Under this list all of your bills, all areas you need money for each month.

For example:

•Utilities
•Rent or Mortgage
•Vehicle Payment
•Vehicle maintenance including gas
•Phone
•Credit Card Payments
•Other Loan Payments
•Groceries
•Clothing
•Entertainment
•Savings
•Insurance
•Etc.


Then provide as many envelopes as you have categories. On the paper - list amounts that each bill will require. Keep all amounts within what your take home pay is - if you go over, adjust accordingly until it fits.

Then place the funds into each envelope - and it might be helpful to write the due date of bills on the outside as well. When that bill comes in - or when you need the funds for that particular category, simply take the funds out to pay the bill.

If you have extra funds left over - place these into one of your debt envelopes to help get ahead and pay off the debt. A good rule is to pay off the smallest debts first, then as you pay them off take the amount you were paying on it and roll it over onto the next debt in line. This helps you to become debt free faster.

This system helps to keep you in check of where you spend your finances each month. Many practice the envelope budget with great success every month by helping you to gain and keep control of where your money goes.

Visit James' website Debt-or-Freedom.com to help you in your steps to financial freedom. Find out more about using the envelope budget system by visiting here: http://www.debt-or-freedom.com/envelope-budgeting.html

I am James Mizzell, owner of

http://www.debt-or-freedom.com where

you can get a lot of good info on debt

relief and personal finance.