One mother-of-two reveals her money-saving tip using just a few envelopes
Tracy stated that she saves money to ease financial strain before taking holidays.
Tracy, from the UK, wrote each family day out and the amount needed on each envelope – such as £50 GPB ($93.65 AUD) for ice skating or a day at the beach.
The envelope should be sealed once she has reached the required amount.
Tracy shared her tip with a family group on Facebook, saying she has been saving for years.
Tracy, mom of Tracy, said that she puts spare change in paper envelopes labeled with various activities to ease financial stress towards the end.
She wrote that she felt intense pressure to complete many things during summer vacations and it was difficult to manage a budget with limited funds.
“These envelopes were started a few years back. These envelopes are used to write the price and I make a list of the items we would like to do.
“Come Summertime I can simply grab an envelope, and we will go no matter how much money is in the bank. I will be starting this year early. It will be a great help to other families with tight budgets.
This budgeting tip can be used by both parents and beginners to save hundreds.
It comes after hundreds tried the 100 envelope challenge last year to help save thousands of dollars – which involves labelling 100 envelopes with sums from $1 to $100.
Michelle was awarded $5,000 for her financial challenges earlier in the year.
This challenge requires you to choose randomly from any number of envelopes each week, then deposit the cash. You will have to put $12 in each envelope (or $76) and $76 inside the other envelope.
Filling the envelopes over any length of time will leave her with an extra $5,050 within 12 months – and it’s perfect for those who are looking to save money for holidays, Christmas presents or even paying off credit card debt.
The 100-envelope challenge is a thrifty task that will see a mother of three get more than $5,000 in her bank account by year’s end. You can randomly pick any 2 envelopes from your stack and place cash in them.
Michelle posted in her TikTok video: “I’m a mom of three kids, and money can get a little tight, especially since school’s going back,”
The challenge requires you to place the money into the envelopes. Once we have completed the challenge, I’ll be depositing the cash.
The mother said two envelopes are usually drawn at random every week.
“I don’t do that every day.” You can modify it according to your needs. It is done twice per week. She explained that she does it whenever her situation permits.
Michelle deposits cash in the envelope and then marks the number on her DIY chart.
The extra $5,050 she’ll receive in twelve months is due to her filling out the envelopes for any length of period. One of the videos shows the mother picking out an envelope labeled $46 (right), so that she could deposit the amount.
Since then, her video has been seen more than 140,000 time. Many others have expressed interest in trying the money-saving technique for themselves.
Other people suggested that you transfer the money into a savings account, rather than using envelopes. But many said it was too difficult to save money.
One wrote, “I’m terrible at saving money. This might be smart for you to do.”
It is built on the formula Carl Friedrich Gauss (18th-century German mathematician) discovered.
Gauss discovered that if Gauss divided the numbers 51-100 and 1-50 into two separate groups, Gauss could then add them vertically to make 101.
One plus 100 is 101. Two plus 99 and three plus 98 equal 101. Three plus 98 equals 99. And so it goes until fifty plus 51.
Therefore, the total of both groups is 50 times 101 = 5,050. This is how much you could save by taking up the envelope challenge.