One of the methods that you can use to help with budgeting and making sure that you can afford a new apartment along with all of the other things that you have to pay each month is the envelope spending. This is a popular method, but it tends to work the best for those who need to find a way to curb their spending. If you tend to overspend on certain things, or on everything, because you put it on a card and don’t pay attention, then the envelope system is the one that will help.
If you are someone who likes to have a more rigid system to help you stop spending money like crazy and you are ready to stay out of debt, but you really hate the idea of having to track each and every purchase you make during the day, then the envelope system is a good one for you. This is a cash-based option that will let you be in control and give you a visual of the amount that you have spent so far that month.
For this method to work, you will set a spending limit for all of the expense categories you choose to work with. You can then fill the envelopes with the allotted amount that you are budgeting for that. Once the envelope is gone, then you are not able to spend more in that category for the rest of the money. If you spend all of your entertainment budget in that first week, that is fine, but you are not able to go and take the money from somewhere else and add to it.
This helps you to visualize the amount that you have spent and can help you stop spending before the money is gone. If you go through a few months of this and find that you routinely are running out of money in a category like groceries, you may need to revisit the budget and see whether it needs to have a bit more put aside for the food each month.
Come and check out some of our co-living apartments and see why these are a great idea when you want a comfortable new home at an affordable price. We offer co-living near Culver City, providing you with the space and luxurious amenities that you need, without all of the hassle. No matter the space that you need or the type of community you would like to be in, we are here to help. Come take a tour and see why co-living is a great option to help you along the way.