You might have heard about envelope budgeting before and wondered exactly how it works. The concept of envelope budgeting has been around for many years, with the most basic example being the physical cash allocation method. This works by dividing income into various physical envelopes that represent different expense categories (food, utilities, etc.). You spend based on the balances in each envelope category. When the money is gone from a given category, you’re done spending until additional income is received or money is diverted from other envelopes (requiring you to then spend less in those envelope categories). This is the basis of the envelope budget system.
Mvelopes has taken the envelope budgeting concept a step further and modernized it. Now you can link to all your financial accounts (checking, savings, credit cards, etc.) to have the most accurate picture of your envelope balances and overall financial standing. There is even the option of checking your envelope balances via mobile phone, so you can make informed spending decisions anytime, anywhere. Mvelopes also has a host of other features, such as online bill pay and a community of experienced users that add to the overall envelope budgeting experience.
The key to the envelope budget system is its ability to help you plan what to do with your money before you even spend it. Envelope budgeting often leads to radical changes in how people spend money, because it forces them to stay within the budget categories they’ve predetermined, drastically reducing overspending. One of the additional benefits of the envelope budget system is that by “pre-spending” your income, you’re actually setting aside money each month for the infrequent expenses many people fail to plan for (car repairs, property taxes, vacations, etc.). So you’ll have the added peace of mind of being prepared for the inevitable curve balls life tends to throw.
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