 TITLE: 4 Types of Budget Plans to Know About CONTENT: 1\\. Envelope System\n-------------------\nThe envelope system is an old-fashioned approach to budgeting that typically relies on cash in physical envelopes.\nYou'll start by determining how much you typically spend (or how much you'd prefer to spend) in different categories, such as rent, groceries and entertainment. Once you've determined an appropriate amount for your spending in each category, you'll label an envelope for each one and put the corresponding amount of cash in the envelope.\nOnce you've used up all the cash in an envelope, you won't be able to spend any more money in that category unless you pull cash from another envelope. Budgets are intended to keep you disciplined, however, and continually moving around money could have a domino effect that impacts expenses you can't afford to cut back on.\nAlso, keep in mind that you may not be able to make some payments in cash. While you don't need to set aside an envelope for these bills, you'll still need to account for them as you determine how much to allocate for other spending categories.\nThe envelope budgeting system can be a good idea for someone who prefers to use cash and wants to be strict with how they manage their money. If you're not a cash user but like the sound of this method, the features of your online banking software may make it possible to do something similar. END