Hi there. I've used a modified version of the envelope system. It works in conjuction with the budget. The idea is to figure out what your variable expenses are. For most its food, gas, entertainment, gifts etc. You then figure out how much you can spend each month on these expenses and put each amount in a different envelope (so one for food, one for gas, one for entertainment etc). Everytime you buy something from one of those categories, you take the money out of the envelope. Once the money is gone, your spending is done.
As I said, my version is modified. I take out $100 a week for groceries and entertainment. If I choose to spend it all on groceries, then I don't have any entertainment money left. Other then that gas is my only other variable expense, and I get $40 every two weeks for that. Anything left over goes into a jar for a bigger ticket item or to stock up when things go onsale.
I hope that was clear!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
I have a goal to get to the envelope system. Right now, I am working on fine tuning my budget, and writing down what I spend. Once I get that down, I am going to save up an emergency fund of $1000. Then, I will start envelopes. Bex explained it pretty well. I am sure I will use a modified version, too.
Hi there. I've used a modified version of the envelope system. It works in conjuction with the budget. The idea is to figure out what your variable expenses are. For most its food, gas, entertainment, gifts etc. You then figure out how much you can spend each month on these expenses and put each amount in a different envelope (so one for food, one for gas, one for entertainment etc). Everytime you buy something from one of those categories, you take the money out of the envelope. Once the money is gone, your spending is done.
As I said, my version is modified. I take out $100 a week for groceries and entertainment. If I choose to spend it all on groceries, then I don't have any entertainment money left. Other then that gas is my only other variable expense, and I get $40 every two weeks for that. Anything left over goes into a jar for a bigger ticket item or to stock up when things go onsale.
I hope that was clear!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -