Envelope budgeting is a simple, systematic way of saving to pay bills while maintaining a personal budget
Typically, the person will write the name and average cost per month of a bill on the front of an envelope. Then, either once a month or when the person gets paid, they will put the amount for that bill in cash in the envelope. When the bill is due, the money is taken out to pay for that bill.
This prevents the person from spending the money out of their pocket or bank account because it is already allocated to the bill.
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