envelope system

The Envelope Budgeting System Can Be Great...Until It Gets Shredded

Many may be familiar with the envelope budgeting system, where you figure out your discretionary income, decide on your budget categories, and then put actual cash into each envelope for those categories.  Then, once the cash is gone, that’s it for that category, unless you move it to another envelope.  It’s a great way to stay accountable.  However, you may wish to make sure your envelopes are in a safe place, out of the reach of little ones.  One couple found this out the hard way.