Budgeting in a Digital World – No more envelopes!
Some people find that setting a budget, and then putting aside money in separate expense envelopes is a great way to control spending.
Although this method of budgeting allows people to have the exact cash that they need for expenses, which can prevent accidental overspending, budgeting by putting money in envelopes has its downfalls.
if you use envelope budgeting, you have to frequently visit the bank or ATM. If you work this can be a challenge during bank business hours; also, it is difficult to make envelope budgeting work unless your entire family is on board. Putting cash in envelopes also increases the chance that you might accidentally lose money.
Everything is going digital in our world including budgeting. There are many online sites and apps that allow you to modernize the same principles you use for envelope budgeting, and also allow you to have a more convenient and safer method of budgeting.
When you use envelope budgeting, your entire family needs to participate in your budgeting plans in order for your budget to be successful. If you use all cash, but your spouse uses credit or debit cards, it can be easy to overspend. Using an online tool can help everyone be on the same page, and it also makes it less likely that you will lose money because cash can be misplaced or lost.
In order to have a successful budget when going digital and using online tools, you still need to start the same way by determining your bills for rent, mortgage, transportation, food and clothing as well as an emergency fund and retirement etc.
You may want to discuss your options with your financial advisor or your Licensed Trustee who is working with your budget.
There are so many budgeting apps to choose from these days. New money management and budgeting apps pop up every few weeks so weeding out the poorly built ones and focusing on the best budget apps can be a bit of a challenge but worth it.
One very popular option is Mint. It is one of the oldest and best-known budgeting apps. Owned by Intuit, the same company that makes QuickBooks and offers an array of features to help you track and manage your money from a giant list of banks, credit card issuers, brokerages, lenders and other financial institutions.
It comes with a wide range of features, but its most useful feature has always been its budget tools, which lie front and center when you log in.
If you are ready to start Budgeting in a Digital World contact D. Thode & Associates Inc. today for a free consultation. We will ensure your options are explained to you and find a solution that works for you.