Envelope System (Cash Only Budget) Explained | How to Make A Budget

START INVESTING FOR FREE:
📈 M1 Finance - https://m1finance.8bxp97.net/NextLeve...

Get FREE Audiobooks and 2 Audible Originals (and support this channel!) with a 30-day Free Trial of Audible: https://amzn.to/2zEFqhT

In today's video, I'm going to be going over how to make a budget using the envelope system. This is also sometimes called the cash only budget or the clip system if you follow Rachel Cruze.

Subscribe for weekly finance videos:    / @nextlevellife  

In a nutshell, the envelope method of budgeting forces you to make your purchases with cash that you have separated into various envelopes labeled by category. Some examples of categories include groceries, eating out, transportation/gas costs, and entertainment expenses.

As you can tell these categories are all variable from month to month. Things like mortgage or rent are not always included in the envelope method (or at least most people don't fill an envelope labeled "mortgage" every month. They just have it paid from their bank automatically).

The goal of this budgeting method is to control spending (and by extension avoid debt) by forcing you to make your purchases in cash.

If you enjoyed this video you can check out some of my other videos at the links below!

All of my Personal Finance Videos: https://goo.gl/XW5U3k
All of my Debt Videos: https://goo.gl/7dfc9N
All of my Retirement Videos: https://goo.gl/4ycETj
All of my Investing and Stock Market Videos: https://goo.gl/Hcujbh
All of my Budgeting Videos: https://goo.gl/VQKAb6

~-~~-~~~-~~-~
Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"
   • The Budget That Pays You First | Reverse B...  
~-~~-~~~-~~-~