keljonma
Epicurean Goddess
We have been Dave Ramsey fans for years. We highly recommend it.
Envelope Budgeting System?
- Thread starter RedneckCowgirl
- Start date
We do the envelope system, but modified because we do so much electronically.
Hubbie gets paid by direct deposit on the 15th and 30th and I pay myself monthly on the 30th (home-based business).
We have automatic bill payment that goes out on those dates for whatever bills come out during each half of the month (mortgage, phone, electric, natural gas, cable, home and car insurance, property tax (we pay monthly), and my credit card (this is actually a business expense and is paid manually but is still paid online).
We then transfer an amount each month into a separate account for incidental expenses like clothing and school field trips etc. Finally we withdraw cash for the gas and food envelopes for each half of the month.
It keeps us on track
Hubbie gets paid by direct deposit on the 15th and 30th and I pay myself monthly on the 30th (home-based business).
We have automatic bill payment that goes out on those dates for whatever bills come out during each half of the month (mortgage, phone, electric, natural gas, cable, home and car insurance, property tax (we pay monthly), and my credit card (this is actually a business expense and is paid manually but is still paid online).
We then transfer an amount each month into a separate account for incidental expenses like clothing and school field trips etc. Finally we withdraw cash for the gas and food envelopes for each half of the month.
It keeps us on track
FarmerJamie
Mr. Sensitive
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I remember my grandparents doing this decades ago. I love the system, DW, not so much.... 
miss_thenorth
Frugal Homesteader
whats DW?
I am not organized enough to do the envelope system, and my hubby can not or will not commit to even trying anything like this. We are sorta like Moolie, where we do the online banking. As soon as I get a bill, I pay it with the postdated feature. I make sure the payment comes out close to teh payday, so funds will be in there. Then I pay us by transferring into a savings account. I have a budget set up so I know what our actual ballpark figures are for groceries etc and that all comes out of the general fund. If at the end of the pay period, there is some left over, it goes into savings. Tehn we start all over again.. Hubby gets paid biweekly.
Our bank has this great budgeting tool that i have started using, and it is really helping me to see how much goes to where., and this helps me be more aware of our spending habits.
I am not organized enough to do the envelope system, and my hubby can not or will not commit to even trying anything like this. We are sorta like Moolie, where we do the online banking. As soon as I get a bill, I pay it with the postdated feature. I make sure the payment comes out close to teh payday, so funds will be in there. Then I pay us by transferring into a savings account. I have a budget set up so I know what our actual ballpark figures are for groceries etc and that all comes out of the general fund. If at the end of the pay period, there is some left over, it goes into savings. Tehn we start all over again.. Hubby gets paid biweekly.
Our bank has this great budgeting tool that i have started using, and it is really helping me to see how much goes to where., and this helps me be more aware of our spending habits.
FarmerJamie
Mr. Sensitive
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I guess that read strangely. My dear wife (DW) struggles with the envelope system.miss_thenorth said:
We actually receive all of our bills electronicallymiss_thenorth said:
It took time for all the utilities etc. to get on board, but we finally killed the last paper bill a year or two ago. SO much less paper coming in the mail now!And, to expand on how we schedule each bill payment, we do similar to MTN in that we pay them all on either the 15th or 30th and don't pay them till the pay date closest to the bill due date. Some are set up to get paid automatically, but I think hubbie still needs to automate some of them and still just pays them manually.
hwillm1977
Almost Self-Reliant
The only things we put in jars (envelopes) are:
Groceries
Transportation (gas)
Clothing and Gifts
Entertainment
Other (baby stuff, pets and animals go here)
EVERYTHING else is done electronically and taken out the day I get paid... mortgage, bills, savings, insurance, taxes and investments... those I consider static and unchanging so there's no reason to have an envelope for them. Sort of like Moolie, bills for the first half of the month come out from my first paycheck... bills for the second half of the month come out of the second paycheck.
Right now I'm on maternity leave so our entertainment jar is $0, and clothing and gifts is also $0... but that will improve when I go back to work in November.
Groceries
Transportation (gas)
Clothing and Gifts
Entertainment
Other (baby stuff, pets and animals go here)
EVERYTHING else is done electronically and taken out the day I get paid... mortgage, bills, savings, insurance, taxes and investments... those I consider static and unchanging so there's no reason to have an envelope for them. Sort of like Moolie, bills for the first half of the month come out from my first paycheck... bills for the second half of the month come out of the second paycheck.
Right now I'm on maternity leave so our entertainment jar is $0, and clothing and gifts is also $0... but that will improve when I go back to work in November.
cuallaidh
Enjoys Recycling
Ya recently started on this system. It turned around our finances in no time
