Folks, it’s time to put your extra cash in an envelope...or several according to NBC’s Erin Lowry. Lowry was an aspiring actress in New York City, working three jobs just to make it all work. And when it came to saving money, she had to figure out how to make it easy…and really, how to make it happen.
In her case, Lowry swears by the envelope method. Here’s how it works: You have an envelope for each thing you need to budget for (rent, utilities, savings, and fun), you can add your cash earnings to each envelope and watch it grow. “I think it’s incredibly helpful to look into your rent envelope and say ‘Hey, it’s half way through the month, but I still need $300,’” Lowry says.
The envelope system is a good visual aid, too. Instead of just having an idea of how much money you need for each of your expenses, you can actually see and feel it.
Source: NBC News