save a fixed amount each month is a real pipe dream for many people. Between fixed costs (mortgage, gas, light, water, bills…) and unexpected At the end of the month there is almost nothing left to save. However, it is not impossible. Today we will tell you a simple way that will allow you. save a fixed amount of money every month. Ideally, you should put in a suitable amount (eg 200 Euros) so that it does not become too difficult for you. About envelope method to save. We tell you what it consists of.
Envelope method to save each month
The envelope method is a simple and effective technique to help you save money. Below we explain how it works.
First of all, you have to decide how much you want to save each month. This is a percentage of your salary or fixed amount We recommend that the amount fits within your monthly budget. You can start with 200 Euros.
The second step is to create envelopes labeled with different spending categories“food”, “transport”, “entertainment” etc. Decide how much money you want to allocate to each category each month and put this amount in the relevant envelope.
Don’t touch the “Savings” envelope
Use the money in each envelope only for expenses related to that category. For example, if you spend all of the money on the “entertainment” envelope, you can’t spend any more on recreational activities that month. The key to saving is here. Likewise, the money you deposit in the bank about “savings” should not be used for other purposes.
If any of the envelopes for unavoidable expenses run out before the end of the month, you’ll have to go with the remaining money, but remember to readjust that amount for the next month so that the “savings” envelope never runs out.
The envelope method is a great way to stay within your budget and make sure you’re saving money for your financial goals. It takes some discipline, and it may be difficult at first to control all your spending and keep the money set aside for savings, but over time it can help you gain more control over your spending. personal finance and save every month and almost without realizing it. If you keep going for a year, the result will surprise you and you will finally be able to take that trip you’ve been dreaming about for years or reward yourself with a whim.