The envelope method · Step 1
List your accounts and balances
Write down every place your money sits, with its balance. It's the first step to controlling it.
Before you can tell your money where to go, you need to know exactly what you have. This first step doesn't take long.
Write it all down
Get a pen and paper, or open a notes app. Write down every place your money sits:
- every bank account
- cash at home or in your wallet
- any e-wallet or payment card you top up
- any credit card you use
Next to each one, write its balance. For a credit card, write the amount you owe. If you don't know an exact balance, estimate it for now. You can change it later.
Why it matters
Most people only know roughly what they have. When you write it all down, you see the real picture, maybe for the first time. It might be better than you feared, or worse. Either way, you now know. That's where control starts.
What to leave out
This step is only for everyday money. Don't include investments. Debts and loans come later, in their own part of the series.
Do it in Smarter Budget
- Go to Accounts and add an account for each one on your list.
- Enter each balance.
- For a credit card, choose Credit card. The app asks for the Amount owed.
Now you can see exactly how much money you have to work with.
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General information only, not financial advice. Think about your own situation, and talk to a qualified professional before big financial decisions.