Envelope Budgeting System for Beginners | Minimum Wage

In this video, I’m going to give you my cash budgeting system and show exactly how it works step by step, and it works even if you have a minimum wage.

Let’s get started and make sure to subscriber and like this video, so you get updated with my daily uploads.

Part 1:
– This envelope system is broken down into 6 different envelopes, and our job is to find out exactly what percentage to dedicate to each envelope.

A: We need to Find out your income and your expense. And for this Example:
– One Job: that makes $1000 per week ( if you get paid biweekly its okay, doesn’t matter) Total: $4000 per month
– Multiple Expenses:
Rent: $1,200
Light: $100
Internet: $50
Food: $200
Transportation: $130
Netflix: $8
Spotify: $10
Apple Music: $10
Phone bill: $70
Cloths: $50
Entertainment: $100
Total: $1,928
Weekly Total: $482

Math: Divide Expenses by Income: 48.2% and round up to 49%
Tip: if your income is lower than your expenses, start cutting things off fast. That you don’t need.

Part 2: Organize the other 51%

Emergency: This going to be 10% of your income until you hit 6 months worth of expenses:
– Math: $1,928 *6= $11,568
– By taking 10% of $1000, its going take me: 115.68 Paychecks or 2.22 years.
Tip: After One year: you want to transfer this money to a high yield savings, and just keep the same habit going.

Investing: you want to start with 10% of your income also, some example are, you’re 401k, Investing Acorns, or saving up to buy real estate, getting a new degree, or anything that will get you money back. You want to make sure it’s a safe investment and not a risky one.

Math: $1000 * 10% = $100
Tip: spend the first year learning how to invest by buying books and taking courses.

Debt: you want to put in 25% or more. Because this money is costing you a lot of money: For example, Credit Card, Student Loan, Personal Loans and even a car loan.
Tip: for Debt like a Car or something you bought: you might want to sell it and get something cheaper and that way you forget about the payments.

Math: $1000 *25% = $250
Example: $8000 in credit card debt: done is $8000/250 = 32 paychecks ( less than a year)

Tip: I’ve actually done extremes to pay down debt and make it 40%.

Expenses: we know its 49%
– Just remember to set all the bills on auto-pay

Fun: my favorite which is going to be 5%. But you don’t have to spend all of it.

Math: $1000 * 5% = $50
If you save half for one year: $25 *52 = $1300

For a Vacation, Chrismas gift, any big fun thing you want to do. I usually go on vacation.

Charity: You can do 1% which is pretty good.

Math: $1000 * 1% = $10 a week
Examples: that’s $40 per month you can use to subscribe to 2-4 charities and help feed America or help people third world countries.

Part 3: to summarize everything

Once your Debt is Done: transfer that money to Investing
Once you save enough for emergencies: start putting that %10 in investing also

Overall: Eventually, your money will cover all your expenses, and you’ll be financially independent.
* PRO TIP*
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