Wednesday, January 11, 2012

Week Two - The Envelope Budget

  So, for the past several years I have implemented something I call "The Envelope Budget".  Here's how it works

1- I made my budget (all my expenses going out per month)

2- then I figured up how much I needed to save out each pay check in order to get those bills paid each month. 

3- When payday comes, I write a check to cash, get all that money and sort it into envelopes (each marked with the specefic bill, how much it is per month, and how much needs to be saved out per check to cover that bill.)

4-  Then, when the bill comes, I take the money back out of the envelope, go deposit it into my bank

5- then pay my bill. 

  My mom says that I am crazy for doing it this way (as in getting the money out and then a few days or weeks later going and putting it right back into the bank) but for me, it's much easier. 

  If I left that hunk of money sitting in my bank and carried my checkbook around with me (yes friends, I still use a checkbook) I would say, "WooHoo!! Look at all this moolah I have to play with!!!" and then I would spend it and when bill paying time came, I would be very very sad indeed.  Trust me, I've done it (on accident) before.  It was not pretty.

  That is my way of budgeting.  It works for me although it may be somewhat archaic. 

  Does anyone have any budgeting stratagies they use that may be weird to others? I'd like to hear them. 

  If you have any questions, don't mind asking.... =)


1 comment:

  1. hmmmm, well I don't know if it's a budgeting strategy??? but we pull out a $20, $40 maybe once in awhile a $60 every Friday during the summer to yard sale with and whatever change we have left over is our "play" money for the rest of the week for snacks such as Mt. Dew ect.