It Made Me Want to Dance and Sing

  Since I don't have my notes with me from my Tuesday night Financial Peace class, I will just give you a nugget that REALLY stuck out to me and made my night as my friend was going thru the lesson with me.

  She said that at some point I would be putting at minimum 15% of my pay (before tax) into my 401K.  To which I responded, "But what about my bills?"  Her reply?  "Your bills will be paid off then and all the money you make is YOURS to DO WITH WHAT YOU WANT!!"  Of course, that moment was me having a blonde second but her response floored me and TOTALLY made me that much more excited to be completing the Financial Peace course. 

  Guys, after I get my $1,000 emergency fund and after I get 6 months worth of bill money saved up (for emergencies) I get to KEEP all the money I make. 

  But not only will I keep it, I can give it, donate it, buy people nice things, etc etc etc.  What I've always wanted to do but have been constrained because I didn't have the money!!!

  Isn't that exciting?! 

  If you haven't heard of Dave Ramsey's Financial Peace Plan, check it out.  If you don't have the funds to spend on it, try to find a friend or family member who has the information and who is willing to share.  It is well worth your search or your investment!!!!

 Sara

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.... =)

$ara