Envelope system`

[boefixepa]

Re: Envelope system`

It's a computerised envelope system. I love it in the fact that it links all my checking accounts, mortagage accounts, credit card accounts and saving accounts. As the charges come through you 'drop' them into the correct envelope. Each day you can see the balance and each month (or paycheck I do it monthly) you fund your envelopes. You can see day to day how much you have left. It makes it so you can easily pay off your CC each month. There's no 'free money' because even CC charges have to be assigned (dropped) into the budget category(envelope). It takes the money from there and put it in your CC envelope so when the bill is due the money is there! So nice. And you can see all your money and where it's allocated. It also has a bill pay system and so all my bills are paid through that. I never need a 'real' envelope to mail a bill, I never need a stamp. I can schedule all my bills way in advance and I really don't even think about it any more. It's great! I love having a plan and being able to watch it work all the time! If you want to check it out the web site is www.mvelopes.com Theres lots of fun stuff on there. Yes, you do have to pay for the service, but I save soooo much by using it, it's paid for it's self a hundred times over. Plus you never have to worry about updates, your computer taking a dive, or backing up. And you can access it from any computer, anywhere, anytime. Their on-line support has been great too!

[poundwise]

Re: Envelope system`


I do not use Mvelopes myself, but I think it is a good system and could serve as a good tool. The only drawback is that it is a subscription service with a monthly fee. I don't do fees if I can help it. Still, I can see how it could be well worth it for some.

[jmjj215]

Re: Envelope system`

Mvelopes as automatic syncing w/ your bank which is very important to some. If that's not so important to you, considering setting something up that mimics the functionality of mvelopes in spreadsheet software. That's what I did and it's worked very well for us (and I don't continue paying for the service month after month).

[Diolla]

Re: Envelope system`

I looked at the mvenvelopes but I distrust having all my financial info on a server plus I hate monthly fees for something that is working fine for me without them. My bank already gives me free online bill pay.

I think it seems like this very simple process can get complicated very easily.

I don't quite understand the fear of cash some people have and I don't want to spend time figuring how much I spent, on what. I take care of everything twice a month when I get paid and never have to bother again until next payday. To me this is the epitome of simplification. I have a spreadsheet for checking and one for savings and my envelopes for spending. All I have to do is add and subtract.

I downloaded 2 'envelope system' budgeting packages and after about 4 hours still could not make them work the way my 'real' envelopes do. As stated above I did not try the online service (not even sure I even spelled it right) even though they offer a free 30 day trial.

[boefixepa]

Re: Envelope system`

Diolla, that's perfectly okay. If what you are doing works for you don't worry about it. What I love is the overall envelope idea. It works wonders for giving you limits and allows you to save or buildup cash for things like car repairs or higher electric bills in the summer months. It really makes no difference how you choose to do it....just as long as you do it and the system you use works for you!

That is why if you get on 'even bill pay' for the gas or electrical companies all they really do is an envelope system for you. They average the year and starting in the 'low' months make you pay the average so that in the 'peak' months you have built up a reserve to pay the higher bills. Amazing what companies have gone to doing because consumers can't plan ahead!

[vsjhoc]

Re: Envelope system`

That is why if you get on 'even bill pay' for the gas or electrical companies all they really do is an envelope system for you. They average the year and starting in the 'low' months make you pay the average so that in the 'peak' months you have built up a reserve to pay the higher bills. Amazing what companies have gone to doing because consumers can't plan ahead!

I also do this for auto and home insurance (same insurance company) -- they bill me once every month or 6 weeks and it's a lot less painful.

[boefixepa]

Re: Envelope system`

Me too! I do my home insurance, auto insurance, auto registration, and property taxes this way too. I only pay those once a year, but I put a little away each month for it so it's there no worries when I need it.

[Ima saver]

Re: Envelope system`

I just budget so much a week for house insurance and taxes and just keep them in my check book with a note as to how much I have accumulated.
I think i will just stick to my old fashioned envelopes and cash!

[Snakpac]

Re: Envelope system`

I used to use envelopes, but when my money started being direct deposited, I switched to ING accounts. I set up individual ING accounts just like my envelops were, and had them automatically withdrawl the amount needed for each account. So, I don't have to think about it.

I'm interested in hearing more about the excel spreadsheet envelope system. I had never thought about using that.

[lrjohnson]

Re: Envelope system`

Jesse's being modest, perhaps.

I don't know him (JMJJ215) aside from this forum; I bought his $19.95 YouNeedABudget excel software (to track my minimum wage challenge, so it's also my $20 challenge) and it does offer what I consider envelope like budgeting.

He's got some examples on his website (his signature link). Even if you weren't a buyer, it's got good ideas to "steal". I believe he admits that anyone could build a spreadsheet like his, but they'd be hard-pressed to do it in enough hours to justify saving 19.95. (I'd guess a minimum of 40 hours, so if you did it yourself you'd be "earning" 50 cents an hour.)

[autoxer]

Re: Envelope system`

I've been working on this Excel Spreadsheet to track my Freedom Account / Envelopes. My ING account will hold my next years Roth contribution until January when it will be invested. What do you think?

[Ima saver]

Re: Envelope system`

I am afraid I will just have to stick to regular envelopes, I don't know anything about computers.

[boefixepa]

Re: Envelope system`

Looks great, you just have to stay on top of maintaining it.

That's fine Ima, as long as what you are doing works there's no reason to change it if you don't want too.

[jmjj215]

Re: Envelope system`

It looks like it'll serve you well!

[Dido]

Re: Envelope system`

I'll second LRJohnson's comments on jjmj215's You Need A Budget system (I think it's very admirable that he hasn't mentioned it himself on this thread, which would be the obvious place to give a self-plug). I've used both Mvelopes and the YNAB system and prefer YNAB because (1) you pay for it once, not monthly; (2) I'd rather update by hand than have the automatic downloading--for some this could be a security preference but I use Yodlee too so for me it's not the security but the increased mindfulness I have over my money when I have to enter all my transactions; (3) greater control. Also Jesse's very helpful when it comes to providing individualized tech support if necessary!