Using the Digital Envelope Method for household budgeting

Using the Digital Envelope Method for household budgeting

HUNTSVILLE, AL (WAFF) - Many people use the envelop method of budgeting. That's where we put a certain amount each month in an envelope for certain expenses and only spend what is in that envelope.

The digital method works the same, except it's electronically through your online banking and no envelopes are required!

Here's how it works:

  • Open multiple savings accounts. Use multiple savings accounts and give them each a name that represents what you are saving for: childcare, vacation, dance classes, groceries.
  • Set up automatic transfers. Decide how much you need to spend and transfer that amount over.
  • Track your spending and savings. Make adjustments where needed. For example, you thought $100 each month for dining out was enough but discover later that it is not. You then choose to cut back or add more to that account.

For more on the envelop method of budgeting click here.

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