Envelope Budgeting Summary 2022

Running Head: ENVELOPE BUDGETING 1
ENVELOPE BUDGETING

ENVELOPE BUDGETING
Table of Contents
Summarize the process of envelope budgeting...............................................................................3
Advantages and Disadvantages.......................................................................................................3
Assignment 1...................................................................................................................................4
A).................................................................................................................................................4
B)..................................................................................................................................................4
1)...............................................................................................................................................4
2)...............................................................................................................................................5
3)...............................................................................................................................................5
4)...............................................................................................................................................6
References........................................................................................................................................7

ENVELOPE BUDGETING
Summarize the process of envelope budgeting
The process of envelope budgeting can be made understood as keeping aside the particular
amount of the funds for a specific purpose. Under this scenario an envelope is created with the
purpose marked on the top of it and hence, the amount is transferred on a regular basis. The
process has three basic elements or says situations, such as make purchase, do not make purchase
at all, or save the money during the month and save till next month (Wikipedia, 2019).
Advantages and Disadvantages
Envelope budgeting can be helpful in long run, but can also be difficult to implement. In order to
understand, the strength and weaknesses have been determined below.
 One of the best feature of the envelope budgeting is it can be used as an emergency fund.
 There are no absurd fees to be charged in case of using the cash.
 The spending habits can be controlled, as it helps in saving the cash even for a single
purpose (Jansson, Mastercard International Inc, 2018).
 Having the cash in hand, will always help in making the payments on time.
The negative features that are associated with the envelope budgeting are ass follows.
 Not all family members are ready to adopt this practice and for envelope budgeting to
show its real results, all family members must be in agreement.