Monday, June 11, 2012

Manage Your Money - Step# 5: Depositing Allocated Funds to Your Personal Bank

"I have learnt to seek my happiness in limiting my desires, rather than attempting to satisfy them." ~ John Stuart Mill

Now let's proceed to the next step - Depositing Allocated Funds to Your Personal Bank.

So it's your payday! You've been scrimping for the past few days prior to your payday, and now you can't wait to get your hands on those cash. But wait! Before you rush to the mall to dispose your money do the following first.

(1) Withdraw cash from your ATM equivalent to your allocated funds
      Do not withdraw your cash one time. Make multiple withdrawals in terms of P400 or P900 or P1400 or P1900 so that it's easy for you to divide it among the envelopes.  

(2) Go straight home and deposit the money to the envelopes
      By going to the mall with your allocated funds inside your pocket or wallet you risk losing it. Click here to know why.

(3) Write the date and amount of your deposit to the piece of paper that can be found inside each envelope
      This will help you track down you deposits and withdrawals.

(4) Put the envelopes back to the cabinet, lock it
      Consider the money inside the envelopes as not longer your own. You no longer have the freedom to spend it; it's gone.

(5) You can now go out to spend the rest of the money in your ATM
      Now, it is safe to go shopping.

Fairly, simple right? Anybody can do it. But don't let the simplicity of this system makes you underestimate it because it's a very powerful tool in managing your money.

REMINDER: Do not spend the money inside the envelopes for something other than what it's intended for. However, in cases of emergency and you really need money then make sure that you log the amount as borrowed money that you really need to pay ASAP. Remember that it is not your money anymore! However, avoid doing this lest you develop a bad habit in managing your money.

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