Envelope System

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M One necessity for money management is controlling spending. It’s challenging given that credit cards are handy and will let you spend what you don’t have.

V Try the cash envelope system.  It requires planning, but pays off in that you know not just where your money is going, but whether you can sustain that habit.

Cash goes into an envelope. One for grocery, clothing, eating out including drive through coffee, and gifts. Your envelops reflect your life. 

Mortgage or rent and utilities are bills you pay first.  ‘Left over’ money goes into those discretionary envelope categories.

M We’re not saying it’s easy, but it works.