Money saved

[liveandchi]

Re: Money saved

I'm trying to make out my envelope budget for the second month. The first month did not work out well at all and my envelopes didn't last like they should have. The problem is that there is still more money going out than is coming in so not matter how I distribute the money, there isn't enough.

I am looking for a job, but the job market is really tight here and I haven't had any luck.

[akaivyleaf]

Re: Money saved

well lets back up liveandchi.... lets talk about the voilatle food budget. Do you have an average amount that you have document that you've spent over the past 3 months? November, December and January's receipts? I don't think its reasonable to declare a number for your grocery budget without having a clear and concrete idea of what you've been spending. You can't reduce spending by 2% if you don't know what you're reducing from. Therefore it may be premature to do the envelope system if you don't have these numbers.

You can't suddenly go and say I'm only going to spend 175 this month on groceries, if in the past you've been spending 300. That isn't realistic and doomed for failure.

So you might, as they say in football, drop back and punt. Analyze your spending habits, document them and then do your envelope system.

[jhd815]

Re: Money saved

JLP,

Yes I think people do tend to think of savings proportionately, at least I know I did for a long time. Also I think people have become accustomed to convenience. If someone is already at store A and they have what they want, a lot of people will just give in to the convenience aspect and buy it there and be done with it and not even think about store B having the same item for $40 less.

[Tree0164]

Re: Money saved

I don't do evelopes but the folks on Dave Ramsey boards that do say it is an average of 3 to 4 months to get them right.