The So-Called Envelope Stuffing
Look through the newspapers or employment websites and you are sure to find a number of offers asking you to stuff envelopes and make money. Victims have succumbed to these ads several times. While a few people have made money from this, most people lose money doing this. Did it occur to you that this theory can be applied to saving your hard earned money? Most people think they must make more money instead of holding on to what they have. Following these tips could help you form good habits over time.
I Do Not Have Enough Money
Many people are in debt due to a lack of savings, and if you ask them why they do not have any savings, the most likely answer you will get is “I do not make enough money to save”. This is true of those making less than 20 thousand a year, but people making over 45 thousand a year still have massive debts. Why would this happen? It is important to manage their finances and save money, but they are unable to do this. It can be easy to save money if you stuff envelopes. Saving money can become a habit if you do this consistently.
Make it a habit
Before you get started, you will need some envelopes and a pen or pencil. When you get your paycheck for the month, do not just deposit the check in your account. Cashing your check instead of depositing will help for this activity.Take the time to create a budget for the month after you return home. Stuff the required amount of money into an envelope, for every expense on your budget. For example, your grocery budget will go into an envelope. Take the rent and put into another one. Take the time to put every expense on each envelope and put the money into each one. Divide your payments into two, if you are being paid bi-weekly, when you stuff the envelopes. Consider yourself well on your way to start saving your money.
Use the money wisely
Once you have stuffed the envelopes based on estimates of expenses, be prepared for your actual expenses differing slightly from your estimates. Note the actual expense on the envelope, when you open an envelope for any expense. The times you do this, as the money decrease, you will get a good idea as to how much you have left. Do not substitute money from one envelope to another, as this will defeat the entire purpose. If your money runs out from one envelope, do not borrow from another one to be able to keep spending. Rents and utilities are not estimates by any means, and will leave you with empty envelopes from the start. If you have any money left over from your envelopes, deposit it into your account. The money that was saved cannot be withdrawn but you may withdraw your paycheck. Even saving a little money can become a habit if you do it all the time. It will also help you see where your money is going in a more concrete way, than if you were to consistently use your debit or credit card. Keep up with this habit over a period of time and you will be well on your way accumulating some savings in your account.
