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?