The 'Envelope Technique'

I developed this technique of saving money when I was a very poor university student. Basically I had just over $100 a week (I know - it was a while ago!) and this had to cover a nominal amount of board paid to parents, car expenses, bus fares, health insurance, clothes, books etc.

I realised that if such a small amount of money had to go so far it required special measures and hence the envelope technique was born.

Basically I made a list of all expenses and worked out how much per week was needed to cover these. Then I wrote the category on the front of each envelope and also the weekly amount required to cover this.

Then each week I would go to my bank and draw out the $100 and carefully put each little amount in each envelope. I even had an envelope for spending money!! (Probably $5). Sometimes I had to do 'high-finance' between envelopes but generally this kept me up with my bills and I never had to borrow from my parents. I admit that I did give each envelope a $20 head start.

Anyway I know this sounds a very corny suggestion but believe me I used to fuss over those envelopes like a clucky mother but like I said I managed to keep up with all my bills.

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Happy saving money!