By MoneyBees
Split your take-home into cash envelopes after bills and savings, see the weekly cash for each envelope, and roll leftovers into next month or sweep them to savings.
A budgeting method where you withdraw your monthly spending money as cash and split it into labelled envelopes, one for each kind of spending. When an envelope is empty, that spending stops until next month.
Start from what you spent last month on each category, from your bank and card statements, then trim. Bills paid by bank transfer and your savings come off the top first, so only day-to-day spending goes into envelopes.
Multiply the monthly envelope by 12 and divide by 52. S$520 a month is S$120 a week. Four weekly draws come to S$480, so the few extra days a month are covered by what is left.
Either leave it in the envelope so next month starts with more, which suits lumpy costs such as gifts, or move it to savings. The planner shows both.
Move cash from another envelope and decide which spending gives way. Reaching for a card instead defeats the point, since the cash limit is what keeps the budget.
Usually not. Rent, utilities, phone and insurance are better paid by GIRO or bank transfer on time. Envelopes are for spending you choose day to day, such as food, transport and shopping.
Keep only the month's spending cash. Cash earns no interest and cannot be replaced if lost or stolen, so savings belong in the bank.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).