Citigroup Inc (C), Bank of America Corp (BAC): The Pros & Cons Of Spreadsheets

Going low-tech
On the other end of the spectrum, many people prefer to budget the old-fashioned way: with cash. A very simple system involves taking the cash from your paycheck and putting it in different envelopes representing the various categories of spending you have.

For instance, when you go to the grocery store, you take the grocery envelope with you. By the end of the month, you’ll know how much you’ve spent and how much you have left in each category. Moreover, the system imposes discipline, since if you don’t have the money available in that envelope, borrowing from another takes specific effort.

Stay smart with your money
A budget spreadsheet can be extremely useful. But if you prefer to budget by other means, don’t feel pressured to use a spreadsheet. Alternatives like custom budgeting software or the old-style envelope method can help you do just as good a job of keeping track of your spending.

The article Forget the Budget Spreadsheet and Be Smarter With Your Cash originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on Bank of America and JPMorgan Chase (NYSE:JPM). You can follow him on Twitter @DanCaplinger. The Motley Fool recommends American Express and Intuit. The Motley Fool owns shares of Bank of America, Citigroup, Intuit, and JPMorgan Chase.

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