New Budgeting Hack from Our Harlingen Credit Union: The Envelope System

Living in the 21st Century means there is more than one way to budget. You should find a system that works for you. With the holidays around the corner, every penny counts, and our Harlingen credit union wants to share a new budgeting method. This budget method is called the envelope system, and we want to share how it works.

The Envelope Method

To create a budget using the envelope method, follow the following instructions:

1. Create a Monthly Budget, which should include your total expenses due month (i.e., rent/mortgage, utilities, groceries, gas, personal expenses, insurance, and car maintenance.)
2. Determine the amount of each category, and use the 50/30/20 budget, which means 50% of your income goes to utilities, 30% of your money goes to personal expenses, and 20% of your payment goes to your savings.
3. Seal each category in an envelope and write down the amount.
4. It’s best to follow the budget and only spend the given amounts within the envelopes.
5. Perseverance and patience are vital to pursuing the envelope system, and your contribution will surely pay off!

Alternatively, If your living expenses and utilities are paid digitally, organize a set amount for your savings and personal expenses by deducing your income with cash deposits and using envelopes to organize your other expenses.

What are the Pros of the Envelope Method

The pros of using the envelope method are that you can:

● Reduce impulse spending

● Stay aware of your spending habits

● Maintain your overdraft fees efficiently

What if I Pay Online?

Our Harlingen Credit Union Makes it easy to manage money online. You can even use Mobile Deposit to have access to your money. With the envelope method, you can jot down what income deductions occur monthly, letting you know where all your money is going. Better yet, track your expenses through the Mobile Banking App.

What about Emergency Funds?

It happens to all of us, and there’s no way of telling what might happen shortly. If you have any leftover money from your income, it’s best to use it for situations like that. However, you can never go wrong with one of the best personal loans Harlingen has to offer.

What if I Have Leftover Money?

Leftover money can be distributed anywhere, or even better, place the money in a savings account or a savings envelope. Either way, the money is yours to keep and use, but spend wisely, and don’t let that money go to waste!

Finance with our Harlingen Credit Union

VFCU provides necessary tools for our members, especially as the holidays are near. This season take advantage of the following tools to make your budget a little hassle-free.

●     Personal Loans 

●     Loyalty Loans

●     Holiday Skip-a-Payment

Apply to Become a Valley FCU Member

Apply to be a Valley FCU member, and contact our Harlingen credit union with questions regarding current lending rates.