- This topic has 16 replies, 1 voice, and was last updated October 23, 2007 at 3:48 pm by .
- October 23, 2007 at 3:48 pm #253838
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.
Diane in GA
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