finicity

Benefits of Envelope Budgeting - Part 3

There are great benefits from applying the envelope approach to monthly budgeting. What you may not expect is that the benefits are not only financial, but also emotional and relational.

Benefit #3: Emergency savings fund. We are privileged to see people break their cycles of debt by creating financial margin in their monthly budget through savings. People who were living from paycheck-to-paycheck are learning to “pay themselves first” and many are able to pay cash for an emergency - like a broken car or a broken appliance. We see families become able to take a vacation for the first time in many years, with the cash that they’ve been able to set aside. Saving becomes just another envelope that needs to be pre-funded every month and once you make it a part of your regular monthly cycle it becomes much easier to start and stick with saving money.

Today's tip brought to you by Mvelopes and Monday4Life Coaching.