The So-Called Envelope Stuffing
Photo: allyou.com
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. While this advertisement is appealing, many people have fallen victim to it. There is more of a chance for you to lose money than to make money on this deal. It is possible to apply this theory to saving money? This concept of saving may be new to some people who may think they must make more before they can save it. 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 may be true for those who do not make enough money to pay the basic bills, but those who make a lot more still have mountains of debt. How can this be explained? It is obvious that they do not have a plan to manage their money and save it. If you want to stuff envelopes, try this method to save money. Saving money can become a habit if you do this consistently.
Just a Habit
Before you get started, you will need some envelopes and a pen or pencil. For this purpose, it will not work for you to deposit your monthly paycheck in your account. Take out the money from your check rather than depositing it. Make a budget for the month after getting back home. All expenses on your budget require an envelope and the money to be stuffed into it. Put your grocery budget into one envelope. Take the rent and put into another one. Each envelope should be labeled with your budgeted expenses and the money put inside. 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.
Using Money Wisely
Once you have stuffed the envelopes based on estimates of expenses, be prepared for your actual expenses differing slightly from your estimates. Please make sure you note the actual expense on the envelope, when you open the same for any expense. To get a good idea of how much you have left, keep an eye on how much the cash in the envelope leaves it. If you substitute money from one envelope to another, you will defeat this entire purpose. If one envelope runs out of money, stop spending on that particular expense instead of borrowing from another envelope. As rents and utilities are not estimates by any means, they will leave your envelopes empty from the start. If you have any money left over from your envelopes, deposit it into your account. You may only withdraw your paycheck but not the money that was saved. Even if you think you do not have enough money to save right now, you can still get in the habit of saving money. This will also help you see where your money is going in a concrete way, than if you were consistently using your credit or debit card. You will be well on your way to accumulate some savings in your account if you continue this habit over a period of time.
