Which Kind Of Budget Method Is Right For You?

Cash-Only Budget

A cash-only budget is one that works well for many individuals because it’s one many are familiar with. It’s not a new concept, it’s not a difficult concept, and it makes following a financial plan much simpler for many individuals due to the simplicity of the plan. Most find it difficult to switch to a totally cash-only budget, so many only choose to do it in certain categories. After all, it’s difficult to pay every expense such as the mortgage and the utilities with cash. Families can start by setting up automatic payments for their standard expenses such as utilities, insurance, and mortgage with their bank. Next, they take cash and separate it into different envelopes labeled for certain items, such as groceries, takeout meals, entertainment, and shopping. Whatever the budget calls for goes into each envelope in cash. This keeps many individuals on a budget because they cannot spend money if it’s not in the envelopes.