All information submitted to Charter College is subject to our privacy policy.
By clicking Request Info, I authorize Charter College to call, text, or email me at email and telephone number provided above with additional school information, and that such communications may be initiated using an automatic telephone dialing system. Reply STOP to end texts. I understand that I am not required to provide this consent to be eligible to enroll or otherwise purchase services.
To prevent automated spam submissions leave this field empty.
Student Life
Share This Page

Envelope Savings: Old Fashioned Financing for the Modern World

Published: October 13, 2014

Did you know that one of the best ways to build your financial future is to build a budget? Knowing what you earn and spend in a typical week can go a long way to helping you create and stick to a realistic budget. And using envelopes—whether actual or virtual—can make crystal clear just what you have to spend. Keep reading to learn how you can start using some old fashioned financing for the modern world.

Before you can divide out your money for spending, you need to know what you earn. As best you can, tabulate the income you earn in an average week. If you’re waiting tables, you’ll need to really pay attention to what you generally earn in tips. If your hours fluctuate at your retail job, you’ll need to go back in time a bit to figure out going forward what you can reasonably expect to earn. Don’t forget to include any money you might receive in child support or government assistance.

Now, create envelopes for each of your weekly expenses. You can use actual envelopes or you can choose an online app that resembles the envelope system and links your bank account to virtual “envelopes.” One envelope might be called “groceries,” while another might be labeled “gas.” The important thing is to make sure you don’t leave anything out. If you pay rent, you need a “rent” envelope. If you’ve begun to pay off student loans, you need a “student loan” envelope. Are you saving up for a special purchase? Include an envelope for it. You’ll also want an emergency or “rainy day” fund. And don’t forget to add one for “entertainment.” Everyone needs some time off and it often costs money.

Assign realistic values for each of your expenses. The best way to get an accurate picture of your expenses is to go back in time and see what you’ve already spent. How much does it cost to fill your tank? What do you usually spend on utilities? Remember, you’re probably not spending the same on heat and electricity in June as you do in February. And when the holidays roll around, you may need to account for the extra expense of gift-giving and family gatherings.

Now, distribute your earnings to each of your envelopes. Fill the envelopes with the amount needed to pay each of your weekly expenses. You’ll soon find out that when it’s actual CASH you’re spending, you’re more likely to be really aware of every cent you spend. Maybe you could save a little money on gas by consolidating trips. Or perhaps, that entertainment envelope needs to have a little less in it this week.

At the end of each week, the leftover money can be distributed to savings, a rainy day fund or carried over for next week’s bills. It’s that simple!

At Charter College, we care about your success in the classroom and beyond. If you really want to build your financial future, why not start with your education? A good education can help you advance in your career or help you find a new one. Charter College offers programs in business, criminal justice, health care, hospitality, information technology, paralegal studies and trades. Want to change your life? Start at Charter College! Learn more by visiting our website.