May 12, 2023
Budget with the digital envelope system for free
Whether you want to pay off debt, save for a rainy day, or spend wisely, it is always to best to practice a budgeting system that works for your lifestyle and current financial situation. In this blog, we’ll walk you through budgeting tips that you can build on to make better financial decisions in the future and get you closer to your financial goals.
1. How to Set Financial Goals
If you are new to financial planning, start with key short-term goals like reducing debt, building an emergency fund, or setting a healthy budget. Start by assessing your current financial situation in detail, considering income, income tax, budget, and net worth. Goals should be S.M.A.R.T. - specific, measurable, achievable, realistic, and time-bound. Assess your situation and determine your goal, how much you will be setting aside each month to achieve it, where this money will come from, and a deadline. Check these examples of SMART financial goals for further guidance.
2. The Digital Envelope System
The digital envelope system separates your monthly budget into categories, with each being put in an 'envelope' to buy/pay for items in that category. One way to create a digital envelope system for free is to set subaccounts at your bank. Digital and online banks usually allow creating subcategories within your main account, but check with your bank if they charge fees for this. At the beginning of each month, distribute the funds between your subaccounts. If a subaccount is not an option, you can use spreadsheets and apps to manually keep track of your "envelopes." Check this Google Spreadsheet template. Click on File and Make a Copy to create an editable version.
3. Save on Gas with These Tips to Reduce Fuel Consumption
With gas prices reaching unprecedented highs, knowing how to drive in a fuel-efficient way can save you up to 25% on gas. Driving slower on the interstate (55-60 mph), using cruise control when possible, and accelerating slowly when picking up speed can reduce fuel consumption by as much as 60%. See more tips for saving on gas here .