Since last spring, we've been using the envelope method to budget. It started when we were looking at buying a new (more expensive) house and realized how much we were truly spending going out to eat, on clothes, going on weekend trips, etc... and how little expenses like oil changes or a quick fix around the house seemed to throw our money-situation out of whack for a week or two. Just thinking to ourselves that we shouldn't spend quite as much or try to save a little more wasn't working - we needed something concrete. So we tried the envelope method and it's worked pretty well for us. We have 'fallen off the wagon' a couple times - especially since I've been pregnant and often need to eat NOW, not 5 minutes from now - and it has been an evolving system with our envelopes and the amounts changing.
Here's how it works: Every Friday when we get paid (we get paid on opposite weeks) we go to the bank and take out a set amount of money. That money gets split up into our envelopes. (We actually use a coupon sorter with 12 different sections. It's the perfect size and keeps everything in one place!!) The categories are: Aaron's clothes, Beer/Alcohol, Blakely's clothes, Car maintenance, Eating out, Games & Entertainment, Gifts, Household repair, Massages, Running, Vacation and Miscellaneous, which we use for an occasional trip to a coffee shop, a snack from a vending machine, or to cover an extra dollar or two from another envelope. Then, if we want to go see a movie, for example, we use the cash from our Games & Entertainment envelope. If there's no money left in the envelope, then we try to get a free movie from Redbox or hope for something good on TV!!
With my impending possible unemployment and a baby coming in a few months, I'm sure we'll be looking for even more ways to scale back our budget. With the envelopes, we should be able to cut back on the amounts being put in each week for a quick and easy way to instantly cut back on our output of money. I'm also reading up on (and trying to gain inspiration from) this blog. *
Anyone have any great budget/money saving ideas??
*Blogger seems to be messing up my link, so it's www.grocerycartchallenge.blogspot.com if it's not working for you either.
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We LOVE envelopes! When we worked for "the man" we did envelopes and LOVED IT! We then switched to an online mvelopes program that worked for a while but the website started to drive me crazy. Now we use another online homemade system that works fairly well since over time we just start to "know" how to not spend $. :)!
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