The envelope budgeting system most people are used to using makes you write down your monthly income and then list out all of your spending categories and what you spend on each one, per month. It also makes most people hate budgeting, and for good reason.
Here are some of my main problems with that system…
Who in the world spends on a monthly basis?
Do you get paid monthly? Do you do monthly groceries? Most of us get paid semi-monthly or bi-weekly, we may do groceries once a week, and have random one-off expenses here and there. A system that forces you to think in terms of monthly spending just isn’t natural.
Envelope budgeting is not very flexible.
I’m a huge Tony Robbins fan. If you haven’t read Awaken the Giant Within, I urge you to make it a priority to read that book. If you’re familiar with Tony’s teachings you know and understand that more often than not we are our biggest obstacle.
Tony gives the example of people who are unlucky enough to be born into terrible environments and yet still manage to rise up and succeed, while so many others spend their lives blaming those environments for their lack of success. His point being that if our environment, whatever that is comprised of, is what determines whether or not we succeed, we wouldn’t be able to find examples of those who have overcome great challenges. Continue reading