Cash Saving Binder and Money Envelope System – Two Approaches to Save Money
If you have recently decided to start a frugal living strategy, then you will know that one of the first steps is to have a cash saving binder. It can be difficult for some people to completely eliminate modern conveniences from their lives. However, there are many ways to save money without hurting the quality of life. In this article I want to show you one of these ways – how to use a cash saving binder to track and record your expenditure. This article will also explain why you should never (ever!)
One of the most important reasons why a budgeting tool such as a money envelope system or cash saving binder is so important is because it helps you understand where your money is going. You see, most people tend to spend money on items that are in their “must have” category. Unfortunately, not everyone has a clear idea of their required income. If they did, then they would have an easier time prioritizing necessary purchases. By tracking your spending in a budgeting tool, you will be able to easily prioritize your purchases. If you only need a few essential items, you will probably still be able to save money.
On the other hand, if you are starting a frugal living style, then you probably need some help prioritizing your purchases. How do you know which items to buy? For starters, you need to know how much you can afford to spend. In addition, you also need to have a precise idea of your monthly expenses. With a budgeting envelope system or a budgeting sheet, you can have all the details at the tip of your fingertips!
So, how do you use these two tools to increase your frugal living skills? The first thing you need to do is to set up an account on the internet. Some websites offer instant expense tracker tools. This is a great way to track your money. You can either track your “real” expenses or the estimated expenses. The latter involves using rebates and coupons to save money on your purchases.
Once you are ready with the online payment system, you can plug this into your budgeting binder. With the cash organizer, you will be able to note down every single penny spent. There is no more guesswork when it comes to tracking your money. As soon as you get your monthly paycheck, you can go through your expenses and cross-check the price range of everything you purchased. This will help you make quick and easy adjustments in your spending habits.
After making a detailed budget of your purchases, you can now go back to your money envelopes and mark down the details of each product. These details may include the price, the store brand, its picture, description and quantity. For example, if you buy a coffee machine, the details may also state whether it has a timer, how many cups it can make, its compatibility with an OS, its warranty period and its water capacity. If you feel like adding more details, then by all means do so.
Another important aspect to note down is the product description. If you are going to purchase a certain product, it pays to read the product description first. Many people do not pay much attention to the details in the product description. The fact is, if you really want to save money, you should not just blindly read the product description but you should also give it a closer look. It is actually the only way for you to know what kind of a bargain you are getting.
Once you are done with reading the product description, you should take note of its pros and cons. If there are several pros, then you should go ahead with it. However, if the item has only a few cons, then you should simply use money envelope system to compare its price with other similar items in the market. By simply using the money envelope system, you will be able to determine how much the item is worth. If it is significantly cheaper than the rest, then there is no reason why you should not consider it. You can even add up the price points of all the similar items in the market and then come up with a rough estimate of the item’s cost.
