Redstone Federal Credit Union

r e d f c u.o r g | 7 You may have already heard of the envelope budgeting system, as this method of saving has been around for decades. By dividing your cash into dedicated envelopes such as groceries, entertainment, clothing and transportation, you can keep track of and put limits on how you spend your money. ƒe digital envelope method follows a similar theory and has gained popularity for organized savers who want a streamlined way to reach their goals. Is this method right for you? Read on, and be sure to ask the helpful staff at Redstone Federal Credit Union if you have questions or need help opening a new account. STEP 1: Open multiple accounts. Create accounts for each of your needs and goals. ƒere is no limit to the number of saving accounts a Redstone member can have. Common accounts include main living expenses, dining out, vacations, emergency fund and new car fund. Consider opening savings accounts for each of your children where they can deposit birthday and holiday money. STEP 2: Set up automatic transfers. Consider what you'd like each account balance to be after a year and divide that number by 12. Want $1,500 for next year's vacation? For this goal, set up a recurring monthly transfer of $125 into your vacation account. With recurring transfers, you can budget automatically. Did you get a bonus at work? Had a record-setting yard sale? Decide how to spend that extra income by depositing it into one of your specified accounts. STEP 3: Track your spending and saving. Use online or mobile banking to stay on top of how much you're spending, saving and allocating to each account, and make any needed adjustments. For example, you thought $100 per month was enough for dining out, but you now realize you need to budget $200. Remember that once money goes into an account, it should only be used for that specified purpose. ƒis is key to your budgeting success using the digital envelope method. Digital Envele Method HOW TO USE THE FOR HOUSEHOLD BUDGETING

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