The Envelopes

Part of going on our budget beginning in 2003 was (and still is) "the envelopes."  With certain categories within the budget, I actually get cash and put in envelopes.  The envelopes are regular all-purpose no. 6 3/4 size from the drugstore.  I replenish the money in the envelopes twice a month.  It is amazing how using cash curbs your spending.  

My friend Mike asked, "Does one of your envelopes have a credit card in it?"  I only use credit cards for gasoline (pay at the pump!!) and on-line purchases.  

When the envelope is empty, no more spending in that category, however, I am flexible and will borrow from another envelope if needed and if there's money to spare there!!    


I know that Dave Ramsey has a lot to say on this topic.  Total Money Makevoer


One of the most important parts of our budget is our "walking around money."  Tom and I have money (an allowance)  that we use for whatever we want, when we want, where we want...


Here is the breakdown of the envelopes we use:

Envelope Money for the 1st of the Month

Tom-"walking around $"

Marcy-"walking around $"

Kids

Med

Dining Out

Target

housekeeper

date w/dad

Groceries

Envelope Money for the 15th of the Month

10 yr old trip

Auto

Dry Cleaning

Clothing/Shoes

Sports

Kids

Med

Date Night

Recreation

Christmas

Gifts

Haircuts

Postage/Parking

Film/Dev

Household/Yard

Pest