What is Envelope Budgeting Software?
Envelope budget software provides sort of a virtual envelope, instead of real envelopes for doing envelope budgeting. The software allows you to create these envelopes and assign them to categories to track your spending activity for each category. When you get your paycheck, the software allows you to divide it up among the “envelopes”, just like if you were putting the money into real envelopes. When you buy something, you record that expense as withdrawing money from the envelope. If you use a credit card to buy something, you’ll take money from the appropriate envelope and put it into the credit card paying envelope. When you pay your credit card, you just pay it out of the credit card envelope.
