Nowadays there seems to be an app that claims to fix all of our financial and budgeting responsibilities. But do we really need them? Perhaps you could try budgeting and money-saving the “good old fashioned way”? The people at Flexy Finance often speak to people looking for budgeting hacks and tips. Recently, this got them thinking about how things were done, before the internet, before mobile phones, and before apps started to make everything “easier”. They came up with three, great old-fashioned ideas to try – and I think they still work well.
There are several old fashioned cash budgeting hacks (some might call them old wives tales) that actually do work and will still work today. They had merit in their time and even though many people would like a technological fix, sometimes the old ways are the best! Let’s take a look at three old fashioned budgeting hacks that work now as well as ever.
The Envelope Budgeting System.
After you’ve paid your bills, including your investments and savings, make a list of all the other things you generally end up spending your money on. This can be things like groceries, entertainment, clothing, beauty and whatever else you like to buy. Decide how much is a decent amount to spend in each of these categories without being wasteful or frivolous with your cash. Then, write the name of each of these categories on a separate envelope. Withdraw the cash amount from your bank account and put the exact amount into each envelope. When this amount of money is depleted in each envelope, that is it – you can’t draw any more cash or spend any more. You can do this on a weekly or monthly basis quite easily. The envelope budgeting method teaches you to spend more carefully when it comes to clothing, hobbies, food snacks and treats.
Don’t Pay for What You Can Do Yourself.
Calling someone in to fix anything that goes wrong around the house is a pretty modern thing. Years ago, most people would fix what they could themselves. There’s probably a lot that you can do around the home yourself, instead of paying someone else to do it for you. Look at YouTube for a great collection of DIY videos that you could follow. The more you do yourself, the more you stand to save.
Set Some of Your Salary Aside, No Matter What.
You can never save too much. It’s good to be prepared for things like a shaky economy or a loss of employment. Before household borrowing rocketed in the 1980s, it was common for everyone to save a good portion of their earnings, even if it wasn’t much. Be strict with yourself when you save. This shouldn’t be a fair weather activity, but something that you do every month. There should be no plan to spend this money and no particular “reason” for saving it (such as a holiday etc.). This money is only to be used for a rainy day.
There are plenty of apps out there that claim to set you and your finances straight. Try them, by all means. But what if the old ways are the best? Follow these old fashion budgeting hacks to find out for yourself.