Why I Use an Envelope Budget (and Free e-Book Giveaway)

Two months ago, when I first started using an envelope budget, I was unsure of what to expect and skeptical at best of what would come out of my 30-day experiment.

At the conclusion of my Mvelopes trial, I was hooked on this method. Mvelopes Personal is not the only way to run an envelopes budget, but the easiest and most comprehensive I have found in today’s digital/debit card age, where true “cash” spending is hard to do for all bills and purchases.

Paradigm Shift

I couldn’t help but throw in that classical self-help cliché at the top of the list – using an envelope budget is a paradigm shift.

Your budgeting mindset quickly changes from a reactive/monitoring status, to a proactive/planning status. You begin to see that you are in control of your money, not the other way around.

Savings Goals

One of the best and most immediate uses for an envelope system is the ability to create an unlimited number of savings goals. You can save for anything from a trip to see your sister to an elective medical procedure you need to undergo.

With the confidence that you’re saving adequately every month, you can be sure that when the time comes, you’ll have the money required to come through unscathed.

Irregular Expenses & Big Purchases

Instead of taking on debt or not being able to afford the big purchases most families make (can you say, Christmas gifts?), you can spread the expense over a longer period of time and save incrementally.

For example, let’s suppose that every January, you spend $600 on a professional association fee that’s important for networking in your job. That’s quite a hit when you’re unprepared for it.

But suppose you can put away $50 every month, which doesn’t seem nearly as hard. In 12 months, you’ll have enough to pay your fee without blinking an eye. It’s that simple.

Can We Afford That? – No More Guess-Work

When my wife used to ask me this question (or when I asked it myself), I never really had an answer.

I knew our account balances, and what our budget allowed, but I was never quite sure whether we could really afford to buy something without a little bit of guess-work and a splash of faith that everything would turn out OK.

That’s no longer the case. I can immediately look up the exact amount available for any potential expense and make an instant decision about the best use of our money. I can buy something with peace of mind, or refuse to buy it with a strong understanding of why (as opposed to “I don’t think we can”).

Why I Like Mvelopes

As I already mentioned, I’m a big fan of the Mvelopes Personal budgeting software for many reasons. One of the reasons my wife loves our new system so much is the relative ease of use when compared to Quicken and Money.

Although I’m still a fan of these desktop programs for bill tracking, account management, and an overview of “where” money is, I have switched exclusively to Mvelopes for cash flow and budgeting management.

It would be too difficult to create the same system in Quicken, and it’s well worth the price.

Envelope Your Way to Financial Success

I’ve been using the envelope system for a little more than 2 months, and I’ve grown addicted to the effects it can have.

I’m more confident of my financial choices, my mind is at easy of where our money is going, and I’m focused about achieving our money goals much sooner than expected.

…and the Free E-Book Give-Away

The folks at Mvelopes were kind enough to send over an e-Book that goes through the basics of envelope budgeting, and discusses why more people than ever are choosing to switch to this budgeting type.

You can download your copy of “Money for Life” for free here (PDF). Enjoy and share!

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