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Money allocation under envelop budget

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  • Money allocation under envelop budget

    Hello,

    I have a couple of problems with my envelop budget

    Well, one problem is that electricity and water came higher than expected. Also, the two credit cards I still have a balance with have increased their minimum payment amounts. about this, I will need to further cut on other things...right?

    The other problem is that I built a monthly budget, but I don't receive all my money at the beginning of the month. So, as I allocate money to the multiple 'envelopes' my balance becomes red in a hurry.

    How do you determine how to allocate the moneys so you don't overdraft from one paycheck to the other?

    Thank you!

  • #2
    Well, one problem is that electricity and water came higher than expected. Also, the two credit cards I still have a balance with have increased their minimum payment amounts. about this, I will need to further cut on other things...right?
    Right.

    The other problem is that I built a monthly budget, but I don't receive all my money at the beginning of the month. So, as I allocate money to the multiple 'envelopes' my balance becomes red in a hurry.
    Under YNAB, until you have built up a month's buffer, you don't allocate money to the envelopes until you receive your paycheck. Working to save up that month buffer makes it much easier to avoid overdraft charges.

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    • #3
      Originally posted by Radiance View Post
      , The other problem is that I built a monthly budget, but I don't receive all my money at the beginning of the month. So, as I allocate money to the multiple 'envelopes' my balance becomes red in a hurry.
      I think you need to divide your monthly budget down by pay period. If you have allocated $400 for food, but are paid twice a month, you would put only $200 in the food envelope for that pay period. If you spend less, than you have money that carries over to the next week. In order to spend more, you would need to take cash from another envelope/category.

      I'm not an experience envelope person, but this is how I would do it.
      My other blog is Your Organized Friend.

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      • #4
        I think I need a combination of both.
        It will be tough, or it has been tough to build any type of buffer, but I keep on trying.
        Meanwhile I will have to do a bi-weekly budget. What a drag!

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        • #5
          For our electric bill, I take our highest monthly bill of the year and use that as the monthly amount. Then, if it is lower, at the end of the month, that gets pulled out and either added to a bill, added to the EF, or used to put another envelope into the red.

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