My mother is a very visual and kinesthetic learner. She needs to be able to see things and touch things in order to understand them. A long line of numbers in a checkbook ledger does nothing for her, and she insists that calculators are evil creatures with minds of their own.
When she and my dad divorced years ago, she asked that her alimony be given to her in cash, and she placed the proper amount of money into envelopes marked “rent,” “food,” “utilities,” “gas,” and so forth. This was the only way in which she was able to see how her money was being spent, and to make sure she had enough money for each expense every month.
Other people understand those long lines of numbers. They can look at their ledger and know what they have and what they can spend. But if you’re like my mom, you might find yourself constantly overdrawn.
The envelope system has probably been around since the invention of the envelope. You essentially just create an envelope for each of your expenses, which will vary from person to person. You write the expense on the front, and you tuck the envelopes away in a drawer or a box. If you would like to give this method a try, I recommend the following:
1. In addition to writing “rent,” “utilities,” or what-have-you on the envelope, write down the date when that bill is due. Include the address of the debtor so you have all the information in one place.
2. Include an envelope for expenses that come up annually or semi-annually so you can be saving for them.
3. Be prepared to take the money to the bank when you need to mail out a bill and are unable to pay it in cash. This becomes a little bit time-consuming, my #1 reason for not using this method, but for those who don’t grasp the concept in any other way, the time spent is worth it.
4. Keep the envelopes in a place that makes sense to you, but is not easily found by someone else in your home or a guest to your home. Tell no one of your system—you don’t want it to get noised abroad that you have envelopes of cash in your house.
5. Make sure that you know exactly how many envelopes you have and that one doesn’t get misplaced. It would be a huge problem if your rent didn’t get paid because your rent envelope slid back behind your socks.
Regardless of your learning style or organization style, there is a way to manage your money and make it work for you. Keep looking – you’ll find it.
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