How to control your spending | Try managing your money the old-fashioned way

By Alex Thomas Sadler

Taking control of your money

The concept of money — and everything that goes along with it — can definitely be confusing, intimidating and certainly overwhelming.

But I want to make something very clear: You do not have to be an expert to be good with money.

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Regardless of how much you have or how much you know, successful money management comes down to one simple thing: discipline.

Actually, anyone can be good with money — you just have to start paying attention and find a method that works for you.

RELATED: 6 easy money tips for people who are forgetful or unorganized

Why you need a budget

So if you’re struggling to get a handle on your spending and saving, there’s one simple solution that can boost your money management skills pretty quickly — and it’s called the envelope method.

RELATED: How to change the way you think about budgeting

Envelope Method: How cash can control your spending

The thing about cash that makes people change their habits is the tangible effect — actually feeling your wallet (or envelope) getting thinner.

Basically, you’re going to a cash-only budget in order to get a better understanding of not only where your money is going, but also how much you’re wasting each month.

How the envelope method works

  1. First, make sure to keep enough cash in your checking account to cover any recurring bills or other monthly payments you pay by check or online.
  2. Next, figure out how much you should be spending each month on every other category of your budget.
  3. Once you have enough money in your checking to cover recurring bills, then go ahead and split up the rest of your paycheck/money/budget into separate envelopes of cash.
  4. Each envelope represents one area of spending — so if you've budgeted $500 for groceries each month, then put $500 cash into an envelope labeled "groceries."
  5. Then do this for all of your other monthly expenses (eating out, shopping, entertainment etc.).
  6. Use the envelopes to keep track of exactly how much you've spent and how much you have left for the rest of the month for each part of the budget.

After implementing this strategy, you’ll quickly find yourself rethinking a lot more purchases — as handing over a $20 bill (when the envelope is getting thinner) will be a lot more difficult than just swiping a card.

Tracking your spending