Envelope Budgeting – Griffith University Welfare and Student Liaison Office

Hi, I’m Kate and this is the story of
how I learnt to budget…the hard way A couple of months ago my bank balance was looking pretty healthy So I took my friend out for her birthday
And I bought the most beautiful new guitar And I still had money leftover until.. Uh oh…I remembered my car rego was due…
And I kind of need my car Also my rent is due at the end of the week
How did I get myself into this financial mess? Maybe I should have saved up for the guitar
And we could have gone to a cheaper restaurant and still had fun
That’s when I learnt about Envelope Budgeting With Envelope Budgeting you have an envelope
for each of your expenses Rent, food, transport, education costs, bills
and then one for savings or emergencies And you work out how much you need to put
aside for each expense each fortnight So now if I go out for dinner I only take
money out of the food envelope And when the electricity bill comes in, there
is money in the envelope to pay for it I only use the money from the corresponding
envelope and leave the other envelopes untouched Yes..it takes a bit of discipline, but at
least next time my rego is due, I know the money will be waiting in my car and travel
envelope Carrying around a bunch of envelopes isn’t
very convenient So I like to use an app
Or you could use linked accounts or sub-accounts with your bank. Many banks offer free online sub-accounts
Or even a spreadsheet or notebook So, envelope budgeting has taught me how I
can have what I want But all at the right time and without the
stress Give envelope budgeting a go

Daniel Yohans

Leave a Reply

Your email address will not be published. Required fields are marked *