Listen, y’all. I just came across something that is going to change the way we save money. It’s called The 100 Envelope system and let me tell you, it’s a game-changer.
Check out this image:
Now, I know what you’re thinking. “Another savings system? Ugh, I can barely keep track of my current one.” But hear me out.
The 100 Envelope system is simple. All you need is 100 envelopes and a container to hold them in. Each envelope represents $1,000 in savings. So, if your goal is to save $10,000, you’ll need 10 envelopes.
Once you have your envelopes, it’s time to start saving. Each time you get paid, take a percentage of your income (say, 10%) and put it in one of the envelopes. You can choose which envelope to put it in based on your financial goals. Maybe one envelope is for a down payment on a house, while another is for a vacation fund.
Here’s an example:
Let’s say I want to save $5,000 for a new car. I’ll take five envelopes and label them “Car Fund.” Each pay period, I’ll put 10% of my income (let’s say $100) into one of the envelopes. It’s that simple!
The best part? You can physically see your progress. As you fill up each envelope, you’ll feel a sense of accomplishment. Plus, you won’t be tempted to dip into your savings because each envelope is labeled with a specific goal.
Here’s another example:
Let’s say you want to save $10,000 for an emergency fund. Instead of having one envelope labeled “Emergency Fund,” break it down into smaller goals. Maybe one envelope is for six months’ worth of living expenses, while another is for unexpected expenses (like a car repair). By breaking it down into smaller goals, you’ll feel less overwhelmed and more motivated to save.
So, what are you waiting for? Start your 100 Envelope system today and watch your savings grow!
