Envelope Budgeting.

For years  we have been doing this and we find this is the best.viable,easy and practical way of saving few rupees in spite of limited income where we find no surplus money to save  for meeting the need during emergencies. This is applicable in most of the limited income,salaried middle class family where we find  it very difficult to meet both ends.Although every one knows the importance of saving and try to save we find it very difficult to in practice.Envelope budgeting, where we almost know all the expenditure limits and we provide some excess on all the expenses as margin which becomes surplus if not spent at the month end.Besides we provide for certain expenses like dining out which for some reason not spent becomes surplus.Even we used to make provision for repair and maintenance of TV,FRIDGE,Air conditioners etc on monthly basis which is mostly not spent every month and the money may be a small amount keeps accumulating and during emergency this amt is used for paying the repair bill and you do not feel the unexpected burden during the successive months.I worked for a nationalised bank for almost 23 years and I tried with recurring deposits as a mode of monthly saving and believe it or not I have never allowed the R.D. to mature and I invariably on all occasions I foreclosed the account for some need or the other and this is the case of most of us.But it is only after the envelope budgeting that we started having some saving. We were really thrilled to to see some saving by this very easy method. Of course you need a will to do it and it is always said "Where there is a will there is a way and I am very honest about it.