Hopefully the title of this post caught your attention, because today I’m going to share my favorite tip of all time when it comes to managing money.
In today’s world, it’s extremely easy to spend money without even thinking about it, swipe a piece of plastic, tap a couple of buttons, insert your chip, and before you know it, you’re broke.
While credit cards are very useful tools for a number of reasons that I’m not going to get into, they are also very dangerous if abused.
My tip today is to create a few different envelopes with some of your most common expenses written on the front, for example: car repairs, groceries, gas money, etc..
Each month set aside a pre-determined amount of cash before spending any. Once you’ve set this cash aside, divvy it up between your envelopes. This way whenever expenses come up you have already budgeted an allotted amount for each category.
I have actually even used the “car” envelope to buy a used car with low miles on it after a few years of saving. It doesn’t seem like much, but this tip has gotten me through some very tough financial times because I had planned ahead.
Hope you enjoyed today’s tip, be sure to check back often.