How the Budget By Paycheck Method Works When Retired
We’ve all heard of living paycheck to paycheck…but what about budgeting from paycheck to paycheck? Budget by Paycheck may not be talked about as often as some of the more popular budgeting plans, but it might be the perfect method for you.
No matter your income, a budget is an important tool that will reduce stress in your day-to-day living and help you reach financial goals. When money is tight, budgeting is a way to keep your spending under control and eliminate debt by living within your means.
In the envelope system of budgeting, your take-home pay is cashed out, and placed into different envelopes each assigned to a different budget category.
You can only spend the money in each envelope during your time period, so once the money is out for a particular category, spending is done!