Envelopes of Power
By Chris Helgeson
When talking about money, one could make the argument that it’s like water: sometimes it’s easy to see, it’s always beautiful to look at, but once you try and hold it, it continually slips through your fingers! It seems that finances are something that we all need a little bit more work on. So in the holiday spirit of giving (yes, I know I didn’t get you anything back in December, but better late than never), here’s one financial plan that works when used.
Each time that you get your paycheck, cash it, and then divide the money up into individual envelops. Give each one a title like: Bills, Rent, Gas, Food, Misc., and Play (‘cause let’s face it, we all find an excuse anyway). You should know how much rent is, you’ll have a fare idea how much your bills come out to be, and hopefully you can guestamate gas and food. With the areas that aren’t consistent, you can add another $10-$20 to each one. With all of the leftover money not in a separated category, deposit it into your bank account A.S. A. P.! …we’ll call that your emergency fund envelop. With another envelop, seal your debit card in it, and hide it in a spot where it can’t get stolen. Now you are ready to begin.
During each month (or in-between paychecks), you know have money to spend. If you are getting gas, take your envelop with you, fill up the tank, pay for the gas, and then return ALL of the change back into your envelop. Same with food or dates. Always return the change back into the appointed envelop. When you are out of money in a particular envelop, you know you can’t spend anymore until the next paycheck. This might be hard to do at first, and you might want to “borrow” money from another envelop, but stick with the plan! The reason we’re all poor is because we get our wants confused with our needs. When you get the next paycheck, instead of looking at any money that’s left over as “free” money, deposit that into your bank account as you cash your check! It’ll be hard to do, but if you have the fortitude to do so, your emergency fund will start to grow. Then you’ll have money for when you really need it.
When talking about money, one could make the argument that it’s like water: sometimes it’s easy to see, it’s always beautiful to look at, but once you try and hold it, it continually slips through your fingers! It seems that finances are something that we all need a little bit more work on. So in the holiday spirit of giving (yes, I know I didn’t get you anything back in December, but better late than never), here’s one financial plan that works when used.
Each time that you get your paycheck, cash it, and then divide the money up into individual envelops. Give each one a title like: Bills, Rent, Gas, Food, Misc., and Play (‘cause let’s face it, we all find an excuse anyway). You should know how much rent is, you’ll have a fare idea how much your bills come out to be, and hopefully you can guestamate gas and food. With the areas that aren’t consistent, you can add another $10-$20 to each one. With all of the leftover money not in a separated category, deposit it into your bank account A.S. A. P.! …we’ll call that your emergency fund envelop. With another envelop, seal your debit card in it, and hide it in a spot where it can’t get stolen. Now you are ready to begin.
During each month (or in-between paychecks), you know have money to spend. If you are getting gas, take your envelop with you, fill up the tank, pay for the gas, and then return ALL of the change back into your envelop. Same with food or dates. Always return the change back into the appointed envelop. When you are out of money in a particular envelop, you know you can’t spend anymore until the next paycheck. This might be hard to do at first, and you might want to “borrow” money from another envelop, but stick with the plan! The reason we’re all poor is because we get our wants confused with our needs. When you get the next paycheck, instead of looking at any money that’s left over as “free” money, deposit that into your bank account as you cash your check! It’ll be hard to do, but if you have the fortitude to do so, your emergency fund will start to grow. Then you’ll have money for when you really need it.
