The Envelope system
I was 15 years old when I got my first job at a pizza place. I made a whopping $1.50 an hour. I thought it was a fortune. Right away my dad sat me down and taught me the envelope system for budgeting money. Back then we did not have ATM cards or cell phones, so cash was more or less king. The system is based on cash which society today does not really function on, we are system based on plastic. But using cash will help you learn or figure out where your money is going. It also helps you spend less and be more diligent about how much money you spend. There is something about paying for something in cash verses swiping your credit card.
Below are a few videos about the envelope system. They are slightly different. The key is to find the system that works for you. I was taught to put my entire budget into cash to see where my money goes, this has value today if you overspend and cannot figure out where your cash is going. Some videos suggest using the envelope system for certain items such as groceries and entertainment.
The basic concept is to cash your paycheck and divide the cash up into envelopes that represent your budget. The groceries envelope gets your food money. The clothing gets your clothing allowance. The car insurance envelope gets its own dedicated money and so on. Watch these videos and come up with your own plan.
This video is a good idea if you want to go the extra mile and get hyper organized.