Jan 2, 2013
Works for us Wednesday: Envelope Budget
I have been trying to find a budget that was workable for me for a really long time. I needed something that I could record on immediately after a purchase rather than trying to remember to add it on a computer or something else later. I needed something that would allow me to record any type of purchase (cash, credit card or check). I needed something that was simple without a lot of categories. I found this video via Pinterest and it has been the most wonderful budget system for me. It is as simple as you can get. It works for me because we run our house very similar to the way she runs hers. My husband pays the bills and I have money to buy the stuff that our family needs (groceries, household supplies, clothes, diapers, formula etc). I am sure you could still make it work even if you don't have a set up quite like this. What I love about this is that I carry it in my wallet with me everywhere and so any time I make a purchase I am reminded to record it and I am also reminded that I am working within a budget and therefore I have more accountability. I can see how much I have spent each week and I can see how much I have left to spend and for some reason that envelope makes me that much more responsible. I absolutely love this idea. I pay for most everything with my debit/credit card or a check. I rarely have cash on hand but when I do I consider it "free" money and don't include it in my budget (I usually get cash when I sell an odd or end at a yard sale or on-line). And since I have been doing it I have saved an average of 100.00 per month (and usually it is more). I start with 600.00 a month for all the things I need to buy for our family and usually only spend $450.00-$500.00 within that month because I make better choices, keep records and make myself be accountable all on a plain old white envelope. I am not saying this is perfect for everyone (if you already have a good working budget then I wouldn't suggest worry about this) but if you are looking for something very simplistic then this would be worth checking out. It definitely works for me.
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I may have to try this. We have a good budget in place already, but I like the accountability she gives from one week to the next. Something to think about anyway!
ReplyDeleteWe've been using the envelope method since last summer and it's working like a charm! If the cash isn't there, we can't buy whatever it is, so we make better choices. It's allowed us to pay down our debts much faster and put money into savings for when baby #2 comes in March. So glad you found it works for you too!!
ReplyDeleteI've been working on a budget for a while now trying to spend all in just cash but I never remember to take it out or it becomes such a pain to get all the different amounts needed. This seems so much better. My 2 favorite points are that you have all your receipts in one spot and the no borrowing from week to week just side to side. I just started this week but already love it. Thank you for this post.
ReplyDeleteApril