Examining the envelope budgeting system
ONE of the characteristics of a healthy financial life is good budgeting. It is not enough that spending is lower than income. It is not enough that expenses are clearly identified. Spending must also be strategic. A budget translates priorities into effective allocations. A popular budgeting system is the envelope budgeting system. This has been popularized by renowned personal finance advocate Dave Ramsey. In this light, it is worthwhile to review the envelope budgeting system, its advantages and its disadvantages.