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It is one thing to prepare a personal budget; it is another thing to stick to it. Financial planners have suggested various mechanisms to provide support for enforcing personal budgets. One approach is called “envelope budgeting.”
Read the article provided at http://en.wikipedia.org/wiki/Envelope_budgeting, and answer the following questions.
1) Summarize the process of envelope budgeting.
2) Evaluate whether you think you would benefit from envelope budgeting. What do you think are its strengths and weaknesses relative to your personal situation?
Sample Solution
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