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assignment, get a number of envelopes. Lable each envelope for things you would buy each month such as: grocery, clothes, gas, etc. and put the amount of money you want to spend on each item in each of these envelopes. Use the amounts you entered in your budgeting spreadsheet software if need be. After doing this, only use the money available in the envelope for the item labeled. Once that money is used up, it's gone. Don't add money from one envelope to another envelope; that's cheating! It can be a little scary in the beginning but you'll get the hang of it and you'll be amazed how keeping track of where and how you spend with the envelope system will reduce spending and help you save a lot of money. In one year you'll find that a tremendous amount of money can be saved by doing this and you will be far more well off financially by doing this consistantly over time.

Last, take a look at your change. Yes, pennies, nickels, dimes, etc. A lot of people see no value in pennies. Pennies are simply thrown out into the street. Don't follow suit. Sit down each weekend and empty all of the change from your purse or bag and your clothing pockets. Find a special vase or jar and use this as your coin jar. At the end of each week empty your change into the jar. By the end of the month take the jar to a coinstar machine or to your bank and have them sort the change and give you the money back in bills. You can either roll this into savings or choose to spend this money as you please to treat yourself. You will be amazed at how much money you will accrue in change; this is no joke! A lot of people who do this to track their money often have $40, $50 or even more in dollars saved up over the month!

Living a cash only existence can be inconvenient in the beginning if you aren't accustomed to carrying cash but this method makes it easy to keep track of expenses and helps you monitor your money extremely well. It also forces you to be disciplined in your spending habits. I would recommend this way of life to anyone who has been swallowed up in debts and is trying to look for a way out of their bad spending habits and debt problems. Doing this can lead to creating financial security for yourself. People often make more money than they think they do. Spending habits can tell you how the money disappears and a cash only existence is the easiest way to set you on the path to financial control.

Learn more about this author, Victoria Jeffrey.
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