Decide how the money you bring home will be allocated towards your financial commitments and goals.

When you get paid, set aside the allocated amounts into envelopes for each expense.

Before making a spending decision, look in the envelope for that expense and see if there is money there.

Repeat Step 2 every time you get paid (or at the beginning of every month). Money left over in an envelope from the last paycheck gets added to. In this way, you systematically save for bigger expenses such as medical, dental, auto insurance, and Christmas.

Though this system works well for day to day expenses, it also works for your long range expenses. Goals such as a new home, family vacation, new car, retirement and peace of mind coming from having money set aside for emergencies, are all easily attained by a faithful practice of these principles.

The Practical Side Working with cash in today's world is impractical. And although you can do this on paper, it is tedious. MAKE$.CENTS provides the ability to easily do the same thing on the computer.

This budgeting methodology may seem rigid and unyielding, but do not treat it as such. Saying "If there is no money left in a particular envelope I absolutely will not make the purchase" is a little extreme. For instance, there are times when you may go grocery shopping on the last day of the month and there is no money left in the Groceries envelope. Since the groceries will be used in the next month, go ahead and buy them. The next day monies will be allocated to the Groceries envelope bringing it positive.

Consider medical expenses. You may need to go to the doctor's office even though there is no money in your medical expenses envelope. Do not worry about going negative in one envelope that tends to build up over several months. This system provides a systematic way to save up the average amount of money spent on various financial commitments . It may take a couple of months to build (or rebuild) an envelope, but at least you have the plan to do so. Having said that, be careful not to write a check if there is a negative balance in your checking account.

This method of budgeting is meant to be a rolling, flexible budget that works for you. In regards to saving money, time works for you. Over the course of time, money is continually allocated towards envelopes, building or rebuilding the balances for them. Have wisdom and patience and you will be able to accomplish your financial desires.