Budget Planning with Envelopes

budgeting envelopes

Hi, All!

While the baby was asleep I got the idea to create envelopes for each of our expenses. I don’t know about you but I’m a visual person and thought it would be a great idea for me to see and physically place checks or cash in the envelopes. It’s so easy to make payments online with a card but how often do you go and look at your online banking? I used to be an avid user of online banking; I’m not quite sure when I fell off of the wagon. And I’m so not a check registrar kind of girl (even though I should be). For me, seeing everything in Numbers is a lot easier. I see where we begin the month and where we end it.

Budget Envelopes Enable You To:

  • see how much you have left over after expenses
  • track where your money goes each month
  • keep coupons in envelopes they apply to (i.e. groceries, misc. shopping)

You really could place how much money you’ve set aside for each category in each envelope and work backwards. For example, say you’ve budgeted for $200 to be spent on recreational activities for the month. You get to the third week of the month and discover you’ve used the balance in the envelope –oops! That means you don’t get to do anything else fun that requires funds until the next month begins. You’ll avoid spending money you don’t have.

I think this is such a great idea for our family. What’s your budgeting system?

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2 comments
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  2. Your one of the smart ones girly 😉 . I’ve been doing this for over 8 years and it works great!! I do the backwards approach!!! I have a wallet with many slots and one utilities, one for groceries, one for gas, one for rent which is now mortgage and one for spending. By doing this I always know how much money I have and have been able to live within our means. A year ago where my husband works he took on a temporary plant manager job which increased his monthly income an additional $1200 a month. When the job comes up later this year were hoping he gets it but people always ask me “ismr it gonna be hard to adjust our life style if he doesn’t get that job?”….I just smile and say No, not at all because we were smart enough to not elinclude that extra monthly income into our monthly budget, it always just went straight into savings :). People were always surprised by this lol. I was not always good at budgeting and spent way beyond our means when I was in my early 20’s so Mich so it caused us to file bankruptcy in 2011 but sinvlce then my I smartened up and my husband taught me how to budget(he was good at it, it was me that was horrible at it lol), since then we’ve been able to budget well and save money and live within our means and by doing this we were finally able to buy our first house last December :). Anyways after this looonnngg story I just want to say your doing a great job girl and keep it up!!!!! Also congrats on your marriage to Shane and your new baby!! I’ve know Shane since he was just a little boy running around in the Cottonwood Congregation lol. Tell Shane I said hello 🙂

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