envelope system

[The Budget Man]

Re: envelope system

helllo,
i have posted a while back asking for some advice on how to start using
the envelopes to help me get back from serious debth. I get paid every
week my paycheck depends on how many hours i work latley i been
doing 40=45 hours i just need to know how to stop living from paycheck
to paycheck and keep some money in my pockets. I thought maybe the
old fashion way of budgeting using envelopes might help me. please can
some one just help me.

3.

Congratulations on being ready to have a go at budgeting. Envelope systems were a great way to budget when we were paid in cash. I notice that you say you receive a paycheck. I presume this goes to the bank and then the money goes off in all directions, most of it not being seen as cash.

Here's the problem .... cash budgets are great with envelopes. However our banking has become too complex for them to work.

Here's an idea that works. There are only three places you can spend money...

1. Day-To-Day living such as groceries

2. Bill Paying - most of this by cheque or other bank based payments

3. Savings

This means that the first step in any budget is separating the expenses and having an account that looks after the bills and a second account that looks after the Day-To-Day expenses.

This is the easy way of moving from an envelope budget to a budget that works with the way we are paid.

Enjoy Your Money
The Budget Man

[Ima saver]

Re: envelope system

I have to disagree. I have never been paid in cash. I write a check out to pay my husband. I go down to the bank and cash it, bring the cash home and put in into the respective envelopes that I have set up for my budget.
I started this system in 1965 when I first got married and it still works for me. The first item on the budget and the first envelope is, "pay me first" (savings)

[kristinecfp]

Re: envelope system

There's an e-book you should be able to download from somewhere called 'Money 4 life.'

You can find the ebook at www.mvelopes.com. Scroll down about halfway ~ located on the left menu.

Mvelopes is an electronic envelope system. I don't use it myself, but know several people who use it and have had good results with it.

I personally prefer lillyb's approach, where you use envelopes for certain areas, such as groceries, entertainment, etc. and use the rest of your paycehck to pay bills, paydown debt and save.

The most important thing is to find the system that works for you.

Best wishes,
Kristine

[Ima saver]

Re: envelope system

I think that is the key, you have to find out what works for you and stick to it.

[The Budget Man]

Re: envelope system

I have to disagree. I have never been paid in cash. I write a check out to pay my husband. I go down to the bank and cash it, bring the cash home and put in into the respective envelopes that I have set up for my budget.
I started this system in 1965 when I first got married and it still works for me. The first item on the budget and the first envelope is, "pay me first" (savings)

The best system is always the one that works. Envelope based systems are perfect for cash or cashed cheques as you've proved in being able to use one successfully since 1965.

Neither of my adult children use cash or cheques. (I still do at times but those times are becoming less and less frequent.) The married daughter doesn't even have a cheque book.

If your budgeting is not cash based you need an alternative to envelopes. This is one of the reasons why people are struggling with trying to find budgeting methods that work for their way of banking.

Enjoy your income
The Budget Man

https://www.PersonalityBudgeting.com