Envelope System

I am a visual person. It is important that I am seeing the things that I need to prioritize. I need to have a constant reminder. For a person who is a recovering super spender (that is what I call myself), envelope system is a very effective habit.

This is a very "stretched" process. It is an everyday reminder for me whenever I go to work. For most, there are fewer envelopes. More likely a monthly reminder. To me, as you can see, it is an everyday thing.

Here, you will see a breakdown of expenses I only need to incur every single day. Very detailed expenses. It makes you stick to it because I have a savings goal bi-monthly. I have my own limitations and should-be's and must-be's.

Eventually, it will strengthen your discipline and make you stick to your goal strictly.

What would be its benefits?

• You can definitely say no to your colleagues who likes to have those take out deliveries. They will usually shut up when you say you don't have the money
• The trip back home is shorter. When you have money in your pocket, you like going around the place first to bring some things (more of a splurge). Things that you do not really need. Go straight home - it is cheaper and can give you more time to rest.
• It gives you a better view of what would be your ending balance bi monthly.
• It teach you to be more disciplined on how you should handle your expenses
• Eventually, it makes you evaluate the things and prices of an item before you buy them
• When you see that the money left in the envelope is just for your fare, you will hold on to it. Never thinking of buying things you do not really need. AND PLEASE ... do not ask for money to your colleagues as an excuse that you ran out of money. Do not ask them for money with a promise that you will pay them tomorrow. All your goal will be useless should you do this.

Stick to your goal and see what it can do to you eventually!