Why do people sign up for Mvelopes? The most common reason I hear is that people need to get a better idea of exactly where the money is going. They often feel that they should have plenty of income, but it just doesn’t seem to go as far as they would think. There always seems to be more month at the end of the money.
So where does the money go? That’s not always an easy question to answer, and keeping track of your money and spending can be can be a challenge; unless you are using Mvelopes, of course. Using Mvelopes to manage your spending will help you determine exactly where the money is going, but it will also help you to redirect it to other areas once you have that knowledge.
After using Mvelopes for a month, perhaps you discovered that you were spending twice as much on Dining Out as you had estimated. This knowledge gives you the opportunity to determine whether to:
- Adjust your spending plan to match your spending habits
- Adjust your behavior to match your spending plan
- Find a compromise between the two
If you determine that you want to adjust your plan to match your habits, you will need to make sure that you have room within your spending plan for this increase. It will likely require reductions in other areas of spending.
If you don’t have room in your budget to increase the funding for dining out, than you will need to focus some energy on reducing your spending in that area. This is not always an easy thing to do, but it is definitely possible. Make sure you check your envelope balance frequently, as this will help you to stay within your spending goal. The last thing you need to do is simply be dedicated to not overspending your envelope. If you commit to staying within your envelope, you may have to skip a lunch date or two, or cook at home more often, but it will help you improve your financial future.
Jennifer, Money for Life Coach