4. Savings Accounts
Another technologically advanced budgeting system is setting up an individual savings account for each of your goals. Some banks and financial institutions even allow you to give each of the individual accounts nicknames. This allows you to set up different savings accounts to allocate funds for household bills, a vacation fund, college fund, etc. Some savings institutions even allow you to set goals and help you keep track of how much of your goal is actually achieved.
For example, say one of your savings accounts is to save for the family vacation and you set the goal for $2,000. As you deposit money into the vacation savings account, the account will tell you the amount of money you have in the account, but it will also tell you the percentage of the goal you have achieved. For example, when you save $1,000, it will tell you that you have achieved 50 percent of your savings goal.
Budgeting, setting spending limits and managing your money is never a favorite tasks for individuals, business owners or households. Finding a budgeting system and sticking to it, however, can help you and your family achieve your financial goals, stick to your budget and even teach your children money lessons and the value of money.
While the envelope budgeting system does still work for some people, you may be looking for alternatives to this system. You may try one or more of these alternatives before you find the one that works best for you. You may even use a couple of different options for different aspects of your budget. There is not a one-size-fits-all formula for everyone, so by trial and error you can determine which system helps you set your budgeting goals and then stick to them.