Question about how envelope method works exactly...

Hi! I was just wondering how exactly anyone that does the envelope system makes it work. I was told by our mortgage lender that paychecks need to always go into a bank account to help show proof of income, so do

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  1. #1
    Amy & Dustin Roach
    Guest

    Default Question about how envelope method works exactly...

    Hi!



    I was just wondering how exactly anyone that does the envelope system

    makes it work. I was told by our mortgage lender that paychecks need

    to always go into a bank account to help show proof of income, so do

    you put the money in the bank and do an immediate withdrawl after it

    posts to the account and put it back in when its time to make that

    payment? I've tried setting up our bank acct. to auto pay partial

    bills all month, but this past time they took moneies out early and

    caused my account to go in the rears...costing me close to $100, and

    would give me no credit or real explination as to why the payments

    were posted Friday instead of Monday, like they were set up to do.



    We are constantly over shooting our budget and it is getting really

    old!



    TIA,



    Amy








  2. #2
    Idodc@aol.com
    Guest

    Default Question about how envelope method works exactly...



    MY paycheck goes into the bank... I have the autopays all set to withdraw the day after the check goes in... I hit the atm and withdraw what needs to go into the envelopes...

    I make an envelope for each week (i keep them to reuse the next month) I put
    example:

    Gas week of 10/1
    gas week 10/7
    gas week 10/14

    grocery 10/1
    grocery 10/7

    I put the rest of the envelopes in my little safe (where I keep documents that need to stay safe) and on monday I can get my envelope out for that week... I do not touch until then

    I go to the grocery store on payday and I try to buy everything we will need for the month (i use my debit card because that is still in the bank)

    alana


    See what's new at AOL.com and Make AOL Your Homepage.



  3. #3
    Monique Burkes
    Guest

    Default Question about how envelope method works exactly...

    As far as the automatic draft, my bank does the same thing. For example, I get paid this Friday, the 26th. If I have a bill payment set up to be paid on the 26th, they pull it out of my account on the 25th, which I didn't realize. My previous bank didn't do that. My previous bank didn't pull the money out of my account until the check actually cleared. Learned that lesson the hard way, but they refunded my $50 fee.


    But, yes, get direct deposit, then pull the necessary amount out in order to pay your "cash" bills (gas, groceries, clothing, etc).


    On 10/23/07, Amy & Dustin Roach[/b] <bgcandles@yahoo.com> wrote:







    Hi!

    I was just wondering how exactly anyone that does the envelope system
    makes it work. I was told by our mortgage lender that paychecks need
    to always go into a bank account to help show proof of income, so do
    you put the money in the bank and do an immediate withdrawl after it
    posts to the account and put it back in when its time to make that
    payment? I&#39;ve tried setting up our bank acct. to auto pay partial

    bills all month, but this past time they took moneies out early and
    caused my account to go in the rears...costing me close to $100, and
    would give me no credit or real explination as to why the payments
    were posted Friday instead of Monday, like they were set up to do.


    We are constantly over shooting our budget and it is getting really
    old!

    TIA,

    Amy



    --
    Monique
    Euclid, OH


  4. #4
    annette lisenbe
    Guest

    Default Question about how envelope method works exactly...

    I am starting the envelope system this paycheck so I don't have any tried and true experience yet. I plan to write out checks to pay the bills out of my checking account and thenwithdraw the remainder and divide this cash into spendingenvelopes. I'm hoping this will help me track and realize how much money is blown here and there on little stuff. __


    Annette in Alabama

    &#32;_____________________________________________ _____





  5. #5
    armstrca
    Guest

    Default Question about how envelope method works exactly...

    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">Usually, when you set up the auto pay, they will tell you that this check will be posted X # of days in advance (usually 3 - 5 days) so it will arrive by the date you set it up to be paid on. You will need to take the lag time into account, or don't set anything up to auto pay - just pay it manually - online at your bank (another reason why I don't set things up with individual companies - since I like being in control of my $$$ and can change things easily, when I want).
    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">
    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">Also, once you get the mortgage loan, you don't have to deposit your checks into the bank (unless you think you will refinance within the next year) and can use the envelope system.






    From: Budget101_@yahoogroups.com [mailto:Budget101_@yahoogroups.com] On Behalf Of Amy & Dustin Roach
    Sent: Tuesday, October 23, 2007 10:49 AM
    To: Budget101_@yahoogroups.com
    Subject: Budget101.com : Question about how envelope method works exactly...<SPAN class="843095713-24102007">
    <SPAN class="843095713-24102007">
    I've tried setting up our bank acct. to auto pay partial bills all month, but this past time they took moneies out early and caused my account to go in<SPAN class="843095713-24102007"><FONT face="Times New Roman" color="#000000" size="3">arrears



  6. #6
    Diane
    Guest

    Default Question about how envelope method works exactly...

    We use the envelope system. We decided on our budget and only the

    day-in-day-out type money comes out of the account and into my

    envelopes. I have envelopes for groceries, household items, pet

    supplies, gas/oil, dining out, clothing for DD and DH & I, scout money

    (I'm a leader I need to get supplies on a fairly regular basis),

    homeschool supplies (books, paper etc. - this envelope usually just

    builds up until the homeschool fairs), & entertainment. I divide up the

    money across these envelopes and pay out of these envelopes. There is

    no borrowing from one for the other. If my entertainment envelope is

    empty, no movie or whatever for us. Dining out, same thing (this

    envelope is mostly for Wednesday night dinner at church, a soda here or

    there while out, and "emergency meals" for DD after swim when she is

    *starving* and we have errands to run before going home to eat. Yes,

    yes, I know I should plan ahead and pack a meal..just doesn't happen though)



    Beyond that, all the money stays in the main bank account to pay the

    major bills. Some folks go so far as to open "sinking" fund savings

    accounts. Accounts to save up for things like a new car, vacation,

    Christmas, car repairs, home improvements. Once the $$ goal has been

    reached they take the money out and buy whatever they have been saving

    for and they pay CASH, no CCs allowed. We have gone totally to a

    CASH basis from livng on CCs, it was a tough few months living

    within/below our means but it has been so liberating! We took a 7 day

    Disney vacation last December on saved money and paid cash for it all.

    In two days DH and I are going back to WDW for an adult get away and we

    are paying cash for it too. It is so nice coming home from a relaxing,

    fun vacation and not worrying about the bills about to hit from the

    vacation! I keep saving up my "Entertainment" envelope funds to have

    some mad money for while we are down there.



    The biggest thing about envelopes is to budget and be disciplined.

    Commit to no CCs, take them out of your wallet. If you don't have the

    cash, you don't get it until you have saved the cash- real simple. To

    be fair, you should also have an emergency fund established so when

    things go wrong (and they will) you can use that to pay for

    car/vet/repair bills and not whip out the ole CCs.



    HTH!! Check out Dave Ramsey's site for some good guidelines.

    http://www.daveramsey.com/etc/cms/in...ContentID=2926



    Diane in GA






  7. #7
    Jen Scherr
    Guest

    Default Question about how envelope method works exactly...


    Oh I just hate auto pay things~!! We are now up to $644, THIS MONTH, in insufficient funds fees because and auto payment hit ONE day early, and this was a "hard date" I had set up with my credit union!! Oh I am jsut heart broken over this.....it is more than I make in a week at both my jobs put together! One has to be so careful withthe autopay system.

    <FONT size="6">



    ----- Original Message ----
    From: armstrca <carmstr1@ems.jsc.nasa.gov>
    To: Budget101_@yahoogroups.com
    Sent: Wednesday, October 24, 2007 7:02:39 AM
    Subject: Budget101.com : Re: Question about how envelope method works exactly...






    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">Usually, when you set up the auto pay, they will tell you that this check will be posted X # of days in advance (usually 3 - 5 days) so it will arrive by the date you set it up to be paid on. You will need to take the lag time into account, or don't set anything up to auto pay - just pay it manually - online at your bank (another reason why I don't set things up with individual companies - since I like being in control of my $$$ and can change things easily, when I want).
    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">
    <DIV dir="ltr" align="left"><SPAN class="843095713-24102007">Also, once you get the mortgage loan, you don't have to deposit your checks into the bank (unless you think you will refinance within the next year) and can use the envelope system.






    From: Budget101_@yahoogro ups.com [mailto:Budget101_ @yahoogroups. com] On Behalf Of Amy & Dustin Roach
    Sent: Tuesday, October 23, 2007 10:49 AM
    To: Budget101_@yahoogro ups.com
    Subject: Budget101.com : Question about how envelope method works exactly...<SPAN class="843095713-24102007">
    <SPAN class="843095713-24102007">
    I've tried setting up our bank acct. to auto pay partial bills all month, but this past time they took moneies out early and caused my account to go in<SPAN class="843095713-24102007"><FONT face="Times New Roman" color="#000000" size="3">arrears



  8. #8
    sbjmom2002
    Guest

    Default Question about how envelope method works exactly...

    I am trying the envelope method myself. I am using the cash method. I

    have envelopes marked and use that envelope only for that purpose. But

    I have read that you can use your debit card too. Just mark envelopes

    with an amount, put the reciepts in an envelope and subtract from your

    total. I don't think that it would work form me. Just like the

    checkbook I would forget to write something down. I don't see why you

    can't put your check in the bank then take it back out. I would just

    check to see if your bank will charge you a fee and you have to think

    about the number of checks you will have to write (and buy)



    Like I said I am new to this too. For me it is easier to see when the

    cash is gone.



    Good luck!!

    Michele








 

 
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