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.

Home Budget idea

Hi home makers

Envelope Budgeting
 
We all know that whatever income comes in is not enough till the month end. Especially it is a big challenge to the homemaker wives to coupe up everything within the income. Everybody have their budget and they may track by using excel sheets or writing the expenses and through some other way. Let me tell you one secret, How homemaking housewives have money in secret places that only they can find, is by saving from the budget. Though whatever they are saving is for their family welfare only. But there is thrilling and confidence motivational factor in Savings.

Ok let's see our idea of Envelope system in budgeting. You know your income and your expenses. Now  lets fine tune your expenses. Break your expenses in to smaller categories and write down in to a list. Verify a few times before we go to next step. If you are new home maker or just starting budgeting then create a category called "Miscellaneous".

Envelope

Categorise
Let see some categories for your clear idea. Grocery*, Transportation*, Healthcare, Educational Fees, Gas*, Fruits and Veg, Dine out, Personal Care, Television, Electricity*, Entertainment, Relatives, Gifts, House repair and maintenance, Savings, Insurance, Telephone*, Mobile*, Miscellaneous. It may me longer list based on your environment and living style.


Flexible
 Now you have allocated your budget for each category. Don't be so accurate, give some allowances. It will take few months to find the accurate expenses. Now you are finished with your allocation. Now take paper envelopes or covers according to your categories. Write the category name over the cover and allotted budget down to it. Now put the currency in each cover accordingly. You are done.

Now let's start with expense, whenever you are spending take money from corresponding cover and mention the balance in it. When a particular expense comes to the end try to avoid the expenses that is very mandatory.

At the end of the month open all the covers and take all the money out and count it. Its all the gift for the efforts you put to control the expenses under the budget. Now its up to you to include this money to your savings envelope again or to keep it separate on your personal.


This method is widely used by many housewives and found very successful in savings and mainly cutting down the expenses. Note that * mark next to some categories is to inform you that these are the key expenses on which you can save a lot. Have a happy budget and hand full savings.